The "2020 Crypto Hedge Fund Report," published on May xi past PwC and Elwood Nugget Direction Services Ltd., said that cryptocurrency hedge funds' avails under management doubled in 2022.

According to the survey, total avails under management in crypto funds grew from $1 billion in 2022 to more than $two billion by the end of 2022. The average per fund also doubled, jumping from $21.9 million to $44 million.

Correlation with Bitcoin market

The study found that crypto fund launches are highly correlated with the price of Bitcoin. When bitcoin cost spiked in 2022, more funds were launched. While the marketplace slid in tardily 2022, new fund launching showed a "material decline".

The report shows that  of crypto hedge funds' portfolio, 97% include Bitcoin trading, followed past 67% using Ethereum. XRP and Litecoin were in the portfolios of 38% of funds.

Source: "2020 Crypto Hedge Fund Report"

Most xc% of the crypto hedge funds investors surveyed are either family offices or high net worth individuals, with few crypto strategies attracting foundations, venture-upper-case letter funds or alimony funds, according to the survey.

Fund operation

The survey identified four master cryptocurrency hedge fund strategies. The most common is quantitative, or funds taking an approach to the market place in either a directional or a market-neutral manner. Information technology dominates the crypto fund space, being the strategy of 48% of funds.

Source: "2020 Crypto Hedge Fund Study"

Even so, the report came with a caveat: The results were provided by fund managers themselves, and weren't verified by an independent fund administrator or other third party. At that place could be also significant survivorship bias, the study explained:

"The median crypto hedge fund performance was -46% in 2022. However, the median 2022 year-end performance of the funds that are included in this year'due south report is 74%. This provides very articulate bear witness that funds that significantly underperformed during the previous year had to close down."

As Cointelegraph reported previously, crypto funds had go the engine powering the growth of the crypto industry.