Polychain Capital, a cryptocurrency hedge fund observed a 40% decline in its assets under management (AUM), it reportedly shrank from $1 billion high to $591.5 million in Q4 2018, as reported on by the Wall Street Journal on April 11.
As per the WSJ’s sources, the decline could be attributed to a drop in the value of the fund’s holdings amidst the protracted crypto bear market, “rather than […] redemptions by investors.”
While the hedge fund observed a roughly 40 percent drop in the value of its AUM from April through December 2018, the total market capitalization of all cryptocurrencies in the same period observed just over 50 percent of a drop, according to CoinMarketCap data.
Polychain Capital joined the crypto hedge fund space in 2016. The San Francisco-headquartered fund’s recent investments include backing plans, a stablecoin from blockchain payments startup Celo in April and physically delivered crypto futures exchange Coinflex in March.
A Bloomberg report at the start of this year indicates that during the 2018 crypto market slump, the launch of new crypto venture funds for the first time exceeded that of new hedge funds in the space.
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