The cryptocurrency market offers chances for high earnings in several ways. Purchasing, mining, staking, and especially investing in the best crypto hedge funds can prove highly lucrative.
Just like traditional hedge funds, the crypto ones are actively managed. However, due to the volatility of this sector, you should put in only the amount you’re willing to risk. So, if you’re interested in such opportunities, keep reading to learn about the best investment options.
List of Crypto Hedge Funds to Consider
Why Should You Invest in a Cryptocurrency Hedge Fund?
With a hedge fund, a professional manager invests in a pool of money to maximize the returns while minimizing the risk. Hedge funds are usually geared towards wealthy, accredited investors. They can be highly volatile, and the crypto hedge fund structure is similar.
Accredited investors with a net worth of over $1 million primarily participate as they can afford the required investments of about $100,000. Moreover, some funds are available worldwide and offer a “feeder” for non-US investors, while others combine hedge funds with ETFs or mutual funds.
How to Start Hedge Fund Investing?
With hedge funds, you can invest in anything, including crypto. As we previously mentioned, you must be an accredited investor in order to gain access. Before investing, it’s essential to be well-informed about the cryptocurrency market and hedge funds operations and risks.
Some of the top crypto hedge funds of 2020-2022 help you invest exclusively in Bitcoin, while others include other assets. What’s more, these hedge funds follow the same regulation as the traditional ones.
To begin your investment portfolio, look for some of the best crypto hedge funds available and explore what they offer. It’s important to check the minimum investment amount and contact the platform if you have any questions. Keep reading to see our selection of excellent opportunities.
Best Cryptocurrency Hedge Funds for 2024
Pantera Capital
Information about the fund
Pantera Capital was founded in 2003 by Dan Morehead, who is the former Tiger Management Head of Macro Trading and CFO. In 2013, Pantera got into cryptocurrency and has led 50% of 195 investments since.
Pantera has invested over $1 billion of institutional allocations globally. What’s more, it’s the first US-based institutional asset manager that exclusively offers blockchain hedge fund investment assets.
Main offers
Pantera’s portfolio is packed with projects in the blockchain ecosystem, such as exchanges, custodians, institutional trading tools, DeFi, and others. Up to now, Pantera has backed over 90 blockchain companies and 100 early-stage token deals.
Pantera provides investors with complete exposure to all cryptocurrency funds, including:
- Blockchain
- Liquid token
- Early-stage token
- Bitcoin
- Venture
A Bitcoin fund manager will actively manage everything to ensure the best possible returns.
How to start
Funds are available to accredited investors with a minimum of $100,000 or more. If you meet the requirements, you can fill out this form to receive more information or reach out directly via the email listed on the page.
a16z
Information about the fund
That’s one of the biggest crypto hedge funds backing entrepreneurs who build technology companies. It was founded in 2009 by Marc Andreessen and Ben Horowitz, today known as Andreessen Horowitz. It’s a venture capital firm located in Silicon Valley, California.
a16z invests in large-state tech companies in the consumer, enterprise, bio, healthcare, crypto, and fintech industries. Currently, it has about $28.2 billion in assets under management in several funds, including more than one crypto hedge fund with a total value of $3.1 billion.
Main offers
This company’s portfolio is divided into sections. You can browse companies in all stages—seed, venture, or exits. Additionally, you can also select from the following industries:
- Bio and Health
- Crypto
- Consumer
- Enterprise
The crypto section gives you access to over 40 companies, including Aleo, Chia, Dfinity, and Dapper.
How to start
There isn’t a form to directly invest in a16z crypto fund. However, you can check out the contact page for listed emails and reach out to the organization directly.
Digital Currency Group
Information about the fund
Digital Currency Group is a team passionate about cryptocurrencies and blockchain technology. It was founded in 2015 in Stamford, Connecticut. DCG builds and supports blockchain and digital currency companies via networks and access to capital.
It’s one of the best crypto hedge funds and the most active investor in the industry. So far, it has invested in over 220 companies in different countries. What’s more, DCG owns the following five companies:
- CoinDesk
- Genesis
- Grayscale
- Foundry Digital
- Luno
These companies are listed on the official website, and you can explore what they offer. Most are focused on digital currencies and news about the crypto market.
Main offers
DCG is one of the best cryptocurrency hedge funds. It supports the development of distributor ledger networks by investing in digital currencies. Its core digital currency holdings include, but aren’t limited to:
- Bitcoin
- Ethereum
- Ethereum Classic
- Decentraland
- Filecoin
- Livepeer
- Zcash
Its portfolio features Avanti Bank, Bitpay, Coinjar, Kraken, and many other companies.
How to start
While the DCG website isn’t that rich with information, the first thing you should read is the Token Disclosure Policy. If you wish to invest in this decentralized hedge fund, the best way is to reach out via the contact form on this page and ask for more information.
Polychain Capital
Information about the fund
The first thing to be noted is that this company doesn’t have a particularly transparent online presence. Its official website is a one-pager with a brief description of blockchain, digital assets, and instructions on how to submit an offer.
Still, upon further research, we found that Polychain Capital is one of the largest crypto hedge funds on the market. It was founded in 2016 by Olaf Carlson-Wee, a known cryptocurrency fund manager and one of the first three people to join Coinbase. Currently, the company manages over $2 billion in assets.
Main offers
Polychain Capital invests not only in digital currencies but in startups focused on blockchain tech and crypto. As a result, Polychain attracts funds from esteemed venture capital institutions like Square Ventures, Bain, Sequoia Capital. It’s considered one of the robust crypto hedge fund companies.
How to start
The best way to get information about investing with Polychain is to contact the organization directly via [email protected]. According to its official page, an offering may be made only by delivering a confidential offer memorandum to appropriate investors.
ExoAlpha
Information about the fund
That’s a technology trading firm located in France that develops systematic quantitative strategies for the digital asset market. Its approach makes it one of the best options on our crypto hedge fund list.
ExoAlpha is dedicated to delivering great returns to its clients. Its infrastructure is the most effective technical framework to scale the product offering. ExoAlpha’s investment process is entirely automated.
The company utilizes proprietary technology, which allows for fast execution, market screening, automated trading, and real-time reporting to investors.
Main offers
ExoAlpha’s homepage is packed with valuable information about what you can expect from this crypto investment fund. Its services include but aren’t limited to:
- Long/short single or multi-digital asset trading strategies
- Risk management on every level
- Performance in various market conditions
The key elements of risk management with ExoAlpha include:
- Decision risk — execution of proven trading strategies
- Market risk — strong downside protection
- Execution risk — high availability infrastructure with the best class technical providers
- Operational risk — enforced strict procedures for backup and disaster recovery
How to start
If you wish to invest in some of the best crypto hedge funds at ExoAlpha, head to the contact page to ask for more information.
Strix Leviathan
Information about the fund
Strix Leviathan offers actively managed exposure to digital asset markets. The firm is set in Seattle, Washington. It was created in 2018 by a team of experienced finance professionals focused on trading cryptocurrencies. It’s secure, established, diversified, and professionally managed. All the information about this hedge fund for cryptocurrency is located on the website.
Main offers
The interesting thing to note is that Strix Leviathan also offers IRA investing in crypto, which many of the fund’s clients consider to bring higher returns.
What’s more, Strix Leviathan has a proprietary quantitative trading platform, Octopus. However, it’s for the exclusive use of Strix Leviathan and isn’t available to third parties. This hedge fund for crypto provides:
- Data ingestion
- Proprietary trading algorithms
- Robust trade execution engine
- Back office reporting
- Real-time risk management
- Limited partner accounting system
- Order and portfolio management
How to start
If you have questions about investments, know that only accredited investors, defined by the SEC, can get involved. Still, if you qualify, you can make an inquiry via the official website.
Summary
The top crypto hedge funds we listed above can bring a high ROI. However, due to the cryptocurrency market’s volatility, it’s advised that you do sufficient research before investing.
More and more traditional hedge funds have decided to offer their clients an additional crypto investment option. These new options appeal to interested investors and will likely become more established with time.
FAQ
Hedge funds are usually considered a risky investment choice, but they’re popular with accredited investors who aim for higher returns. With the increase in the crypto market’s popularity, many companies decided to offer crypto investment options to their clients.
Despite the market’s volatility, it can be a very lucrative opportunity.
A traditional hedge fund is defined as an actively managed investment pool. A manager uses several strategies that might include buying with borrowed money and trading unconventional assets to achieve returns for their clients.
A cryptocurrency fund, in its essence, is a partnership that leverages cryptocurrency to achieve significant profits. Since cryptocurrency is volatile, this hedge fund is also riskier than the traditional one.
Before investing in a crypto hedge fund, you should do extensive research. However, most companies work exclusively with accredited investors. The funds rely on the founder and the team of analysts for results, so it’s best to look for well-known and established names in the industry.
To start a successful crypto hedge fund, you should carefully develop strategies and open an account with a trusted trading platform. Keep in mind that these funds follow the same regulations as the traditional ones.
Many financial institutions entered the crypto market as Bitcoin soared to an all-time high. Some experts considered it the next gold, so following the trend was a way to earn for their organizations and clients.
Still, the traditional hedge fund organizations are struggling, mainly because of the lack of regulations in the industry. On the other hand, some of the best crypto hedge funds are already experienced with the market and have brought significant returns to their clients.