Cryptocurrency hedge funds manage investments into cryptocurrencies and digital assets.
Cryptocurrency hedge funds are investment funds which pool capital from investors into a group of assets focussingfocusing entirely or partially on cryptocurrencies or other decentralized digital asset. Funds are actively managed by expert or insider investors who analyze and select opportunities for investment and charge fees for this service. A wide variety of both manual and automated strategies exist for diversifying and allocating funds including restricting to high value market cap, hand picking specific assets, and many more. Investors following these strategies typically seek reduced risk exposure to volatility in any specific cryptocurrency in this young market. In addition to hedge funds specializing exclusively in cryptocurrency assets, traditional hedge funds have increased their exposure to cryptocurrency assets.