Is it Really a Crypto Hedge Fund?

Many crypto hedge funds were launched in the past 2 years because of a significant interest growth in cryptocurrencies. While some of these funds include experienced teams coming from other hedge funds, many of them were actually setup to make a quick profit during the hype.

In this article we will show why most so called crypto hedge funds are not actually hedge funds, but just passive investors in a basket of cryptocurrencies, in a way similar to mutual funds. Despite this, many of them still charge the typical 2/20 management and performance fees typical in the hedge fund world. The first section will introduce crypto hedge funds, while the second one will analyze their aggregate performance by looking at the Eurekahedge Cryptocurrency Hedge Fund Index. The last section concludes with key takeaways.

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