The 2018 bear market seems not to have affected the crypto hedge funds which have continued to report massive fund injection. The crypto market which lost 75 percent of its valuation in 2018 has not deterred investment in crypto hedge funds.
Grayscale investment was reported to have raised $330 million by November 1 from its old and new investors. This is a clear indication that the bearish market has not made investors lose confidence in the prospects of the crypto market.
Grayscale is a subsidiary of Digital Currency Group, the venture capital giant. The firm has earlier announced massive increase in the funds it has raised across the last three quarters of 2017.
The managing director of the company, Michael Sonnenshein said that the losses incurred by Bitcoin did not affect the company’s business and its ability to raise funds in a remarkable way.
Bitcoin lost more than 69 percent of its value through 2018. Despite all the positive expectations for the year end, there still is no indication that there will be a repeat of the massive bull-run that made the digital currency a mainstream discussion last year.
Grayscale maintained that this did not affect its client’s base and investor responsiveness towards digital assets.
“Bitcoin prices doing nothing but go down the entire year has not deterred our existing clients from putting more capital to work. Asset inflows are really strong despite these price declines. Investors are taking the pullback as an opportunity to increase their exposure. The price has not slowed down the pace of investments — it’s actually caused us to broaden our relationships” said the MD.
Grayscale has built a reputation as a hedging company that allows entities from the stock market to invest in digital assets such as Bitcoin, Ethereum, Ethereum Classic and Zcash.
Its provision of publicly tradable assets makes the firm a marker in the assessment of the tumultuous relationship between the stock market and the volatile crypto market.
It is not just Grayscale making impact in massive investment in crypto hedge funds. Pantera Capital and Ikigai Asset Management have raised more than $100 million in investment funds in the crypto asset management space.
It has become obvious that there is substantial number of asset managers that consider the loss in value of digital currencies to be mere correction and an opportunity to enter the crypto market.
This is the reason why despite the significant losses the market has seen in the past 11 months has not deterred this class of investors who are mostly viewing digital assets as long-term investments.
