The Merkle

Top 6 Crypto Hedge Funds to Keep an Eye On

Hedge funds have had a big impact in the world of Bitcoin and cryptocurrency over the past twelve months. That is not entirely surprising, considering the direction in which the cryptocurrency sector has evolved. Indeed, a lot of companies classified as hedge funds have a fair amount of digital assets under their control. There are some interesting names on Diar Weekly’s list of the top crypto hedge funds.

6. Pollinate Capital

Although the name of this cryptocurrency-related hedge fund may not ring a bell for most people, it is quickly making a name for itself. The company started out with an estimated US$100 million in funding and is typically labeled a USA-based hedge fund. Its algorithmic trading of cryptocurrencies has attracted a fair bit of attention since the fund’s launch in April of this year. It’s definitely an entity worth keeping an eye on.

5. Logos Fund

One of the older hedge funds associated with cryptocurrency goes by the name Logos Fund. The German investment fund specializes in cryptocurrency mining, which has to be a lucrative venture if none of the coins are sold in the process. Whether or not that is the case remains to be seen, though. Logos Fund may have an interesting future ahead, depending on which currencies it decides to mine in the years to come. So far, it has around US$100m in estimated funding.

4. Blueyard

Although the name would not suggest it, Blueyard is a German VC fund with a very strong focus on blockchain ventures. It invests in early-stage blockchain companies, which could yield some spectacular results if said companies make their visions come true. Unfortunately, blockchain ventures have a history of failing in the early stages of development, making this fund a bit riskier than others. Great risk can come with great reward, though. Blueyard’s US$120 million in funding will only grow to new heights in the future.

3. Galaxy Digital Assets Fund

For a cryptocurrency fund which only launched in September of this year, Galaxy Digital Assets Fund has quickly made a name for itself. Its estimated funding sits at around US$150 million, although that number will only increase in the coming months and years. The company’s focus is multi-pronged, as it encompasses cryptocurrencies, token sales, and startups. It is always best not to put all of one’s eggs in the same basket, and that also applies to hedge funds involved with cryptocurrencies.

2. Polychain

The name Polychain will ring a bell for a lot of people. This US-based hedge fund has been around since July of last year and controls around US$200 million in funding. It manages a portfolio of blockchain assets, indicating that it keeps tabs on a lot of different cryptocurrencies, assets, and digital tokens. Given the way the cryptocurrency industry has boomed these past few years, it is expected that this company will make a lot of progress in the future.

1. Grayscale

Grayscale needs no introduction, as its legacy was cemented quite some time ago. This company currently runs three investment trusts focusing on Bitcoin, Ethereum Classic, and ZCash, respectively. It will be interesting to see whether Grayscale decides to add additional cryptocurrencies to its portfolio, as there are a lot of promising candidates out there right now. At the time of writing, the company controlled over US$1.12 billion in funding.