The 2018 cryptocurrency bear market cost the median crypto hedge fund almost 50%, a new survey headed by PwC revealed on May 12.
According to the findings, around 150 cryptocurrency hedge funds survived last year, which saw bitcoin (BTC) falling from $20,000 to just $3,000.
Of those, the median loss came in at 46%, while quantitative funds — which take bets on price drops in bitcoin and altcoins — still managed to achieve overall returns of 8%.
In April, Polychain Capital, one of the largest crypto hedge funds, nonetheless reported its managed assets had dropped 40% in value in the last quarter of 2018 alone.
Henri Arslanian, PwC fintech and crypto leader for Asia, said 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.”
Other industry sectors also paid a price during the so-called “Crypto Winter.” In particular, those associated with mining saw dramatic fluctuations in profitability as prices dropped, triggering staff cuts and downsizing.