California-based asset manager Reality Shares has become the latest competitor in the Bitcoin hedge fund space, an anonymous source told Business Insider August 15.
Reality Shares, which became known in the cryptocurrency space this year after launching the first Chinese blockchain ETF in June, has reportedly already attracted $25 million for the fund.
Capped at $100 million, the multi-strategy fund would “be a mix of arbitrage, venture, and directional strategies,” the unnamed person “familiar with the firm’s plan” told the publication.
The 2018 bear market in cryptocurrencies has made life difficult for hedge fund operators, which number over 360 as of August.
As Cointelegraph reported previously, industry commentators have raised concerns that continued market suppression would lead to the closure of over 10 percent of said hedge funds by next year.
“People are able to leverage good returns last year to try to raise money this year, but this year is going to be different,” fund investor Rick Marini told Bloomberg about the downturn in April.
Venture capitalist Spencer Bogart meanwhile told CNBC in late June that hedge fund activity could in fact “artificially” lower Bitcoin prices.
Should Reality Shares raise the full $100 million amount, its fund would rival the only 28 that have passed the figure.