The cryptocurrency bear market of 2018 created its fair share of troubles for the individuals and companies involved in the ecosystem, including the median crypto hedge fund cost almost 50%, as revealed by PwC in a new survey on May 12.

The survey findings suggest that when bitcoin (BTC) fell from its perch of  $20,000 to just $3,000 last year, just over 150 cryptocurrency hedge funds managed to survive. Amongst the survivors, the median loss came in at 46%, while quantitative funds, that take bets on price drops in bitcoin and altcoins, managed to achieve overall returns of 8%.

The said Figures point out towards a troublesome time that the still-nascent industry faced last year. Though 2019 has been observing a recovery with bitcoin prices returning to a high in over six months. Polychain Capital, one of the largest crypto hedge funds reported in April that its managed assets had dropped 40% in value in the last quarter of 2018 alone.

PwC fintech and crypto leader for Asia, Henri Arslanian stated in a press release:

“The crypto hedge fund industry today is probably where the traditional hedge fund industry was in the early 1990s. We expect the industry to go through a rapid period of institutionalisation and implementation of sound practices over the coming years.”

Crypto Winter has had affected other industry sectors as well, in particular, those who are associated with cryptocurrency mining. The said industry observed dramatic fluctuations in profitability as prices dropped, triggering staff cuts and downsizing. For instance, crypto mining service, Coinhive is set to Bid Adieu By March.

Bin Ren, the CEO of digital asset managed Elwood, shared the optimism for the future while co-managed the survey with PwC. He commented: 

“This broader interest from investors and regulators is undoubtedly a positive step towards digital assets being recognised as an asset class with true viability and longevity.” 

Read more: Bakkt’s First Bitcoin Futures Testing To Roll Out By July 2019

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