Cryptocurrencies

As Bitcoin Plunged, These Crypto Hedge Funds Kept Making Money

Amber AI’s PTD2 fund surged 30% in first three months of 2018
Hedge fund advised by BitSpread made 5.7% in quarter

Tom, head of research and strategy at Fundstrat Global Advisors, says bitcoin could hit $25,000. (Source: Bloomberg)

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By Bei Hu

April 19, 2018 at 4:00 PM UTC

This article is for subscribers only.

Bitcoin’s terrible start to 2018 is highlighting the appeal of cryptocurrency hedge funds that make money in both bull and bear markets.

Funds specializing in virtual currency market making and arbitrage strategies delivered first-quarter gains even as their mostly bullish peers lost 40 percent on average. That’s a big reversal from last year, when digital assets soared and market-making funds lagged far behind their long-biased counterparts.