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Laxman Pai, Opalesque Asia: Researchers at auditing powerhouse PwC estimates there to be around 150 crypto hedge funds, controlling about $1bn in assets. This excludes crypto index funds and crypto venture capital funds.
Surveying the hundred largest funds by Assets Under Management (AuM), PwC determined that they had a mean of $21.9m under management.
The PwC report on the 2018 performance of crypto hedge funds said that over 60% of these funds have less than $10m in AuM with fewer than 10% managing over $50m.
The median AuM of funds as of Q1 2019 ($4.3m) is 3X that of the median AuM at fund launch ($1.2m - January 2018), which indicates that funds have been relatively successful at fundraising despite difficult market conditions.
52% of funds use an independent custodian, yet only 25% have independent directors on their board. The average size of fund team is 7-8 people. Typical crypto fund investment professionals have between 3-4 years of investment management experience, said the report.
According to the report, 36% of funds surveyed use or can use leverage and 74% can take short positions. Of the funds surveyed, 44% pursue discretionary strategies, 37% quant and 19% fundamental.
Funds tend to be domiciled in the same jurisdictions as traditional hedge funds, with the top three jurisdictions for the fund entity being the Cayman Islands (55%), the United States (17%) and the British Virgin Islands (BVI) (13%), it said.
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