Index provider HFR has launched two indices designed to capture the performance of hedge funds investing in blockchain technology and cryptocurrencies.
A statement released by the company said the launch reflected the “explosive growth” of investor interest in blockchain technology and cryptocurrencies – which this week saw the price of a single bitcoin peak at over $17,000 (€14,500) for the first time.
However, a BarclayHedge survey recently found many hedge funds had “no intention” of investing in cryptocurrencies.
The HFR Blockchain Composite Index includes funds that invest directly in blockchain technology, cryptocurrency or other emerging blockchain innovations.
The HFR Cryptocurrency Index includes all funds which invest and trade in cryptocurrencies directly and which typically generate performance through an actively managed portfolio of cryptocurrency assets, including bitcoin, ethereum, litecoin and ripple as well as new initial coin offerings (ICOs).
HFR began tracking the first cryptocurrency hedge fund in 2013, though interest in the area has surged in 2017 as a result of stratospheric price increases and the broad proliferation of new coins via ICOs.
“Investor interest in funds offering exposure to blockchain technologies and cryptocurrencies has surged in recent months as these innovations continue to move towards the mainstream and generate compelling opportunities for investors, portfolio managers, traders and other market participants,” said HFR president Kenneth Heinz.
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