On July 28, cryptocurrency hedge fund Tetras Capital announced its closure as a result of heavy losses incurred since its inception in 2017. The hedge fund posted 75% losses, according to sources who spoke to CoinDesk.
Primarily focused on altcoins, which have taken a considerable drop in value since 2017, Tetras Capital had been experiencing several quarters of poor performance. Investors’ money will be returned. According to documents, Tetras Capital managed over $33 million for approximately 65 investors, with each investor contributing roughly $100,000.
Tetras Capital was managed by Alex Sunnarborg, Brendan Bernstein and Thomas Garrambone.
Crypto Fund Research reported in December 2019 that 70 crypto focused hedge funds had closed in 2019, also noting that the number of new hedge funds had halved compared to 2018.
Institutional investment still appears to be growing at a considerable rate, at least according to Grayscale Investments.
The firm reported a record influx of funds in Q2 2020, at over $900 million, which doubled the previous quarter’s influx. The firm also purchased almost half of all Ethereum (ETH) that was mined in 2020, and a considerable amount of Bitcoin (though that has temporarily stopped.)