Research outfit Autonomous NEXT has counted 68 crypto hedge funds. Their strategies range from investing in ICOs to holding bitcoin and other cryptocurrencies, such as Ethereum and Litecoin.
Some funds report returns that any hedge fund manager would dream of. The Altana Digital Currency Fund was up about 413 per cent this year to the end of August. In comparison, hedge funds of all strategies have returned about 5.5 per cent in the year to the end of August, according to the data provider eVestment. At the same time, some regulators now have their eye on whether the spiralling value of cryptocurrencies is entering bubble territory. There is also the question of whether swings in these volatile markets leave poorly hedged funds at risk.
https://www.ft.com/content/98031696-9e67-11e7-8cd4-932067fbf946