Crypto hedge funds managed to survive the 2018 bear market

Cryptocurrency hedge fund managed to survive the 2018 bear market that caused the price of Bitcoin to drop by over 70 percent.

A report published by PwC and Elwood analyzed 150 crypto hedge funds that manage around $1 billion in digital assets and found that they suffered losses of only 47 percent.

Industry suffers major losses, but crypto hedge funds stay afloat.

With Bitcoin, the world's largest cryptocurrency, losing almost 75 percent of its value, many have wondered how crypto hedge funds would deal with the tremendous losses.

It seems that hedge funds were among the few types of businesses that managed to stay afloat during the year-long bear market.

Research from PwC and investment firm Elwood showed that crypto hedge funds managed three times more in investments in the first quarter of this year than in early 2018.

PwC's research analyzed around 150 hedge funds, all of which managed to survive the 2018 crash which was Bitcoin fall from $20,000 to just over $3,000.

While crypto hedge funds managed to stay afloat, they did suffer major losses.

PwC found that the median crypto hedge fund delivered a 46 percent loss in 2018, while quantitative crypto hedge funds, which take short positions on Bitcoin and other cryptocurrencies, did better with a median return of 8 percent.

Bin Ren, the chief executive of Elwood, said that the crypto hedge fund sector is paving the way for institutional investors.