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Crypto Hedge Funds List: Top 10 Funds

In the dynamic realm of cryptocurrency investment, where volatility meets innovation, the crypto hedge funds list I've compiled presents a unique avenue for balancing risk and potential. It spotlights the key players and their strategies, serving as your compass to navigate the world of diversified crypto investments that go beyond those made when trading on Binance, Kraken, or other popular crypto exchanges.

By exploring featured funds' strategies, risk levels, and historical performances, you can gain a comprehensive understanding, ultimately fostering confidence to navigate the intricate landscape of crypto investments.

Just note that this list of the best crypto hedge funds available was made simply based on the opinions of many crypto experts.

Key Takeaways

  • A crypto hedge fund is an investment fund that trades and invests in cryptocurrencies to potentially generate profits for its investors;
  • Pantera Capital, BH Digital, and Multicoin Capital are among the top crypto hedge funds;
  • Both crypto hedge funds and crypto venture capital firms work in the same industry, but hedge funds prioritize active trading and short- to medium-term gains, while venture capital firms concentrate on fostering early-stage startups for lasting achievements.
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Crypto Hedge Funds List

In the rapidly evolving landscape of digital assets and cryptocurrencies, hedge funds have emerged as powerful players, offering investors a unique opportunity to capitalize on the volatile and potentially lucrative market. That's why a lot of traders search for curated crypto hedge funds lists, and I'm here to provide you with one.

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These funds combine expert financial strategies with a deep understanding of the blockchain and crypto space to generate substantial returns. However, keep in mind that I'm not here to give you financial advice, and it would be best to consult a financial advisor before making any investment decisions.

Now, without further ado, let’s delve into this list of crypto hedge funds, each with its distinctive approach and track record.

Pantera Capital

One of the featured best crypto hedge funds is Pantera Capital. offers a diverse array of investment avenues for stakeholders, spanning from venture equity within the blockchain sector to emerging tokens and easily tradable cryptocurrencies.

As outlined on the company's official website, the Pantera Liquid Token Fund operates with a primary focus on decentralized finance and related assets, employing a discretionary strategy. This fund allocates resources into 15 to 25 liquid tokens at any given juncture.

Crypto hedge funds list: Pantera Capital.

The inception of Pantera's Liquid Token Fund occurred in November 2017. Prospective investors are required to commit a minimum of $100,000, accompanied by a 2% management fee and a 20% performance fee.

Further enriching Pantera Capital's investment portfolio is the Blockchain Fund, which directs investments into venture equity, early-stage tokens, and easily tradable tokens. The Blockchain Fund sets a minimum investment threshold of $1 million.

BH Digital

Brevan Howard Asset Management stands as a notable example on this crypto hedge funds list, entrusted with managing assets on a global scale for esteemed institutional investors, including sovereign wealth funds, corporate entities, and public pension plans.

The fund strategically allocates investments across diverse asset categories, spanning fixed income, foreign exchange, commodities, and equities. A pivotal development occurred in September 2021 with the inception of BH Digital, the cryptocurrency and digital asset wing of Brevan Howard.

Within BH Digital's framework, an impressive ensemble of over 15 portfolio managers, 10+ data scientists, and traders, along with a cohort exceeding 20 external blockchain engineers, drive its operations, making it one of the best performing crypto hedge funds.

Crypto hedge funds list: BH Digital.

A distinctive fusion of cryptocurrency-native expertise and conventional investment acumen characterizes the global team assembled by BH Digital, as remarked by Brevan Howard. The overarching objective entails reinforcing the fund's engagements within the crypto domain.

This is realized through multifaceted support encompassing blockchain advancement, public relations, capital mobilization, compliance adherence, and talent acquisition. BH Digital sets itself up to play an active role in staking, node operation, and network governance.

The fund's prowess in the crypto landscape is underscored by a significant milestone: in August 2022, Brevan Howard Asset Management garnered over $1 billion from institutional investors for a dedicated crypto fund.

Furthermore, the narrative expanded in March 2023, when the fund took the helm of a crypto hedge fund previously managed by Dragonfly Capital, solidifying its ascendancy in the sector.

Multicoin Capital

Multicoin Capital, established in May 2017, operates as a theory-driven investment firm focused on the crypto market. It specializes in investing in project tokens and shares of blockchain companies, acting as both one of the hedge funds that trade Bitcoin and a venture capital firm.

Crypto hedge funds list: Multicoin Capital.

Noted for its innovative approach, Multicoin Capital pioneers "economy models" for crypto projects, challenges industry norms and employs a visionary team to tackle market challenges. The fund spans the entire crypto spectrum, from infrastructure to applications, aiming to foster growth and solutions.

Multicoin Capital's investment strategy extends beyond financial expansion, assisting projects and teams to evolve and address market issues. It adheres to a clear investment thesis, acquiring project tokens and company shares on blockchain platforms.

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Wave Digital Assets

Wave Digital Assets (often referred to as "Wave") is an SEC-registered investment advisory entity specializing in a distinctive fusion of venture capital, crypto hedge funds list, fund administration, and private wealth oversight within the digital asset realm.

Originating in 2018 within the bustling landscape of Los Angeles, Wave was created by a cadre of immensely proficient individuals native to the crypto sphere and adept in financial services.

Crypto hedge funds list: Wave Digital Assets.

This convergence of talents enables Wave to amalgamate shrewd capital strategies, profound institutional acumen, and pioneering concepts, all aimed at empowering investors to fully tap into the latent potential harbored by digital assets.

Notably, Wave has effectively managed a portfolio exceeding $1 billion in assets under management (AUM) and is duly recognized by the US Securities & Exchange Commission as one of the best performing crypto hedge funds and a bona fide investment adviser.

Morgan Creek Digital

Morgan Creek Capital Management stands as one of the best crypto hedge funds rooted in North Carolina, offering investment management expertise to institutional and eligible clients, including endowments, pension plans, foundations, and family offices.

At the core of Morgan Creek's investment philosophy lies a commitment to diversification and the fusion of alternative investments within conventional portfolios, including hedge funds that trade Bitcoin.

Within its domain, Morgan Creek Digital serves as the cryptocurrency hedge-fund extension. It directs investments toward fledgling blockchain and artificial intelligence enterprises alongside digital assets.

Crypto hedge funds list: Morgan Creek Digital.

In collaboration with Bitwise Asset Management, Morgan Creek Digital opens avenues for institutional clients to engage with prominent cryptocurrencies through the Digital Asset Index Fund.

This fund closely shadows the performance of the Morgan Creek Bitwise Digital Asset Index, a composition encompassing BTC, ETH, ADA, DOT, AVAX, LTC, UNI, ATOM, BCH, and XTZ.

Reflecting on insights shared in December 2022, Mark Yusko, the Chief Executive of Morgan Creek Capital Management, expressed to Stansberry Research his belief in Bitcoin's trajectory to potentially supplant gold. He envisioned a future wherein the unit price of Bitcoin could reach $250,000 as this transition unfolds.

Systematic Alpha Cryptocurrency Arbitrage Master Fund

Systematic Alpha Cryptocurrency Arbitrage Master fund embarked on its trading journey in May 2022, introducing a distinctive proprietary pure arbitrage strategy in the realm of cryptocurrencies. Since then, it can be spotted on several crypto hedge funds lists.

It's noteworthy that the Fund's initial capital infusion was made possible through Bequant, a distinguished institutional prime broker and exchange. Being one of the hedge funds that trade Bitcoin through spot trading, the fund adeptly exploits arbitrage prospects inherent in the trading of these assets across various exchanges.

Crypto hedge funds list: Systematic Alpha Cryptocurrency Master.

This strategy of arbitrage involves the swift buying and selling of a financial instrument across different exchanges to capitalize on price imbalances and reap profits.

The fund's unwavering commitment to meeting the rigorous operational standards expected by institutional investors has led it to collaborate with top-tier service providers.

Its operational prowess was affirmed by successfully passing Operational Due Diligence conducted by an esteemed London-based ODD service provider. A testament to its growing success.

Off The Chain Capital

Off The Chain Capital, one of the more prominent names on this list of crypto hedge funds, is led by well-known crypto investor Anthony Pompliano. A pioneer in blockchain management through a lens of value, Off the Chain Capital embodies the investment principles championed by Benjamin Graham and Warren Buffett.

Off The Chain Capital is known for its strategic approach, often investing in early-stage companies and tokens with promising potential. They typically seek out projects with strong fundamentals, robust use cases, and experienced teams.

It adopts a strictly long-only approach and preserves downside protection while nurturing upward growth. This makes Off The Chain Capital an appealing choice for family offices, endowments, and foundations desiring to diversify their portfolios by entering the blockchain technology ecosystem.

Crypto hedge funds list: Off the Chain Capital.

Evidencing its prowess, the Fund has consistently ranked among the best performing crypto hedge funds, outperforming Bitcoin over 5 consecutive years, all the while maintaining 80% lower downside volatility than the cryptocurrency giant.

"In 10 out of the past 12 years, Bitcoin has reigned supreme as the premier asset class, boasting a superior Sharpe ratio compared to its peers. Our aspiration is to surpass Bitcoin's performance while curbing volatility, a goal we've consistently achieved," affirmed Brian Estes, CEO and CIO of Off The Chain Capital.

Eligible for participation from qualified purchasers, the Fund's portfolio facilitates exposure to prominent blockchain entities like Kraken and Binance. The Fund's strategy entails acquiring mispriced digital assets and aiding employees and seed investors seeking exits from significant blockchain enterprises.

Pythagoras Investment Management

Established in 2014 by Mitchell Dong, Pythagoras Investments stands as a notable example on this crypto hedge funds list and as a prominent hedge fund manager. Operating from its main hub in New York City, the company extends its reach with satellite offices in Cambridge, Singapore, and Hong Kong.

Crypto hedge funds list: Pythagoras Investments.

Under its purview, Pythagoras Token Fund and Pythagoras Investment Management operate, both distinguished by their use of a cryptocurrency-centric approach in pursuing global investment opportunities.

Pythagoras Investment Management combines data-driven analysis, proprietary trading algorithms, and a team of experienced traders to navigate the complexities of the crypto market. The fund's systematic approach aims to capitalize on short-term market inefficiencies while also managing risk through careful portfolio management.

BitBull Capital

BitBull Capital is a cryptocurrency-focused hedge fund and cryptocurrency investment firm. It was founded in 2017 by Joe DiPasquale. The company provides a range of cryptocurrency investment services, including fund management, research, and advisory services.

Crypto hedge funds list: BitBull Capital.

BitBull Capital is known for its diversified approach to cryptocurrency investing, which is why it is present on this crypto hedge funds list. It offers various investment strategies across different cryptocurrencies and tokens and aims to provide exposure to the cryptocurrency market while managing risk through a combination of active trading and long-term holdings.

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BlockTower Capital

The last on this list of crypto hedge funds is BlockTower Capital, which is a cryptocurrency-focused investment firm. It was founded in 2017 by Ari Paul and Matthew Goetz. The firm specializes in blockchain and cryptocurrency investments, offering a range of services, including hedge funds that trade Bitcoin management, trading, and research.

BlockTower Capital is known for its comprehensive approach to cryptocurrency investing, employing strategies that span across various digital assets. The company's team consists of individuals with backgrounds in finance, technology, and cryptocurrency, which contributes to their expertise in the field.

Crypto hedge funds list: BlockTower Capital.

All in all, the world of crypto hedge funds is diverse and dynamic, offering investors a plethora of options to navigate the complex and evolving landscape of digital assets. Each of the mentioned funds brings its own expertise and investment strategies to the table, catering to a range of investor preferences and risk appetites in this sector.

That said, with a glimpse into the best performing crypto hedge funds that dominate the financial landscape, it's time to dive deeper into understanding the mechanics that drive these investment vehicles.

Understanding Crypto Hedge Funds

In the ever-evolving landscape of cryptocurrencies and digital assets, hedge funds have emerged as a prominent avenue for investors looking to capitalize on the opportunities presented by this market. However, as crypto hedge funds lists often include both hedge funds and venture capital firms, the terminology can be confusing. So, what’s the difference?

Crypto hedge funds function similarly to traditional hedge funds but focus exclusively on the cryptocurrency and digital asset markets. These funds employ a range of investment strategies, such as quantitative trading, arbitrage, long-short positions, and portfolio diversification[1].

Their primary goal is to generate consistent returns for investors, regardless of whether the market is bullish or bearish. Crypto hedge funds often leverage sophisticated trading algorithms and financial expertise to manage risk effectively while seeking alpha (outperformance) in a volatile market.

Crypto hedge funds list: coins stacked next to a chart.

Crypto venture capital firms, on the other hand, specialize in early-stage investments in blockchain projects and startups. Unlike hedge funds that engage in various trading strategies, venture capital firms primarily invest in the equity of emerging companies that aim to disrupt industries using blockchain technology.

These firms provide capital to promising projects and often take an active role in mentoring and guiding these startups to success. The focus is on identifying innovative projects with high growth potential, with the hope that a few of these investments will yield substantial returns.

Now, one more term you might also see on crypto hedge funds lists is a crypto asset management company. Essentially, it serves as a broader category that can encompass both crypto hedge funds and crypto venture capital firms. They offer professional management of digital assets on behalf of investors, providing exposure to the crypto market without requiring investors to navigate by themselves.

Crypto asset management companies might offer different types of investment vehicles, including hedge funds, venture capital funds, or hybrid funds that combine aspects of both.

Crypto hedge funds list: two people analyzing a chart.

In conclusion, while the terms "crypto hedge funds," "crypto venture capital firms," and "crypto asset management companies" may sometimes be used interchangeably, understanding the nuances of each is vital for investors.

By compiling a crypto hedge funds list, clarifying the differences between these entities, and evaluating their strategies, expertise, and risk profiles, investors can make informed decisions that align with their financial objectives and risk tolerance in the dynamic world of cryptocurrencies.

Now, let's move on to the key factors to think about before getting into crypto investments. These insights will help you make more informed decisions in line with the crypto market's complexities.

Factors to Consider Before Investing

Venturing into the world of crypto investments, particularly within the context of a crypto hedge funds list, holds great potential, but it's essential to tread cautiously and evaluate key factors before committing your capital.

The dynamic and often unpredictable nature of the cryptocurrency market requires careful consideration to minimize risks and optimize potential returns. So, here are some crucial factors to weigh before investing in crypto hedge funds, venture capital firms, or related ventures:

  • Risk Tolerance. Cryptocurrencies are known for their extreme price volatility. Assess your risk tolerance and determine how much of your portfolio you're willing to allocate to this high-risk, high-reward asset class[2].
  • Investment Goals. Clarify your objectives – are you seeking short-term gains, long-term growth, or a combination? Different investment vehicles cater to varying goals.
  • Fund Reputation and Management. Research the fund's reputation, management team, and experience in the crypto space. A proven track record and a knowledgeable team are indicators of a well-managed fund.
  • Investment Strategy. Understand the fund's strategy, whether it's arbitrage, quantitative trading, or venture capital investments. Ensure the strategy aligns with your goals and risk appetite.
  • Past Performance. While past performance doesn't guarantee future results, it can provide insights into the fund's historical ability to navigate market conditions.
  • Transparency. Look for funds that provide transparent reporting on their holdings, performance, and fees. Transparency fosters trust between investors and fund managers.

Crypto hedge funds list: a person analyzing documents.

  • Fees. Different funds have varying fee structures. Understand the management fees, performance fees, and any other associated costs before committing.
  • Liquidity. Consider the liquidity of your investment. Hedge funds may have lock-up periods, while venture capital investments could be illiquid for an extended period.
  • Market Research. Stay informed about the broader crypto market. Changes in regulations, technological developments, and market sentiment can impact your investments.
  • Diversification. Diversifying your investments across multiple funds or strategies can help mitigate risk and minimize the impact of potential losses.
  • Exit Strategy. Have a clear exit strategy in mind. Whether you plan to hold long-term or have specific profit targets, a well-defined strategy helps you avoid impulsive decisions.
  • Regulatory Environment. Understand the regulatory landscape in your jurisdiction. Cryptocurrency regulations can impact the legality and security of your investments.
  • Due Diligence. Conduct thorough due diligence before investing. Research the fund's history, review its offering documents, and consult with financial professionals if needed.

Crypto hedge funds list: people discussing financial decisions.

  • Security. Ensure the fund has robust security measures in place to protect your investments from cyber threats and hacks.
  • Long-Term Vision. While short-term gains can be enticing, consider the long-term potential of the projects and technologies in which the fund invests.
  • Size of the Hedge Fund. Choose between larger funds for stability and resources, or smaller funds for agility and niche opportunities.
  • Transparency of Hedge Funds. Opt for funds that provide clear information about strategies, holdings, and risk management to understand potential risks.
  • Investor Protections. Research regulatory oversight, custodial arrangements, and audit practices to ensure your investment is protected.
  • Hedge Fund Fees. Evaluate management and performance fees in relation to historical performance and your investment goals.

All in all, investing in crypto hedge funds, venture capital firms, or related entities requires a comprehensive assessment of your goals, risk tolerance, and the offerings of the chosen investment vehicle.

Due diligence, research, and a clear understanding of the market dynamics, including keeping an eye on the latest crypto hedge funds list, will empower you to make informed decisions that align with your financial aspirations and risk tolerance in the ever-evolving world of cryptocurrencies.

Conclusions

In conclusion, this crypto hedge funds list presents a diverse range of investment options at the crossroads of traditional finance and digital innovation. Engaging with these opportunities requires a deep understanding of fund strategies and a meticulous assessment of risks in search of the best crypto hedge funds.

As the cryptocurrency landscape evolves, investors must stay informed, adaptable, and committed to due diligence. The realm of crypto hedge funds, in conjunction with the services of exchanges such as Binance, Kraken, and KuCoin, holds promise, but success demands a balance of exploration, education, and prudent decision-making.


Scientific References

1. D. Di Maio, A. Vianelli: ‘Hedge Funds and Cryptocurrencies: A Top-Down Analysis’;

2. L. Lin, D. Nestarcova: ‘Venture Capital in the Rise of Crypto Economy: Problems and Prospects’.

About Article's Experts & Analysts

By Ain N.

Lead Content Researcher

Ain is the Lead Content Researcher. Her vast experience with crypto and blockchain tech-related content allows her to identify the key pieces of information that should be presented to the learner, and ensure the validity of the gathered data. Wit...
Ain N., Lead Content Researcher
Ain is the Lead Content Researcher. Her vast experience with crypto and blockchain tech-related content allows her to identify the key pieces of information that should be presented to the learner, and ensure the validity of the gathered data.
With a degree in New Media studies, she has developed an extensive list of techniques to educate people via new, research-proven study models based on deduction and long-term human memory.
Ain approaches everything with unequivocal attention to detail. Her main goals are to erase the ambiguity surrounding many Web3 concepts, and to guide content writers in presenting difficult crypto-related concepts in an easy-to-understand manner.
Even though content strategy is her main passion, Ain also enjoys reading high-fantasy books and watching superhero movies.

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FAQ

What strategies do a crypto hedge funds list enable you to employ?

As can be seen on many crypto hedge funds lists, these funds enable the use of a variety of strategies, including long-term holding, day trading, quantitative trading, ICO investing, and more. Such strategies aim to capitalize on market inefficiencies, trends, and price movements often seen on popular crypto exchanges like Binance.

Are there any tax implications with investing in crypto hedge funds?

This is definitely one of the questions that might come up to you after seeing any crypto hedge funds list. There is no straight answer, though, as tax implications vary based on your jurisdiction and the specific fund's structure. Gains from crypto investments, including those made on crypto exchange platforms such as Binance or Kraken, may be subject to capital gains tax. Consulting a tax professional is recommended to understand the tax implications of investing in specific crypto hedge funds.

How to pick the best crypto exchange for yourself?

Picking out the best crypto exchange for yourself, you should always focus on maintaining a balance between the essential features that all top crypto exchanges should have, and those that are important to you, personally. For example, all of the best exchanges should possess top-tier security features, but if you're looking to trade only the main cryptocurrencies, you probably don't really care too much about the variety of coins available on the exchange. It's all a case-by-case scenario!

Which cryptocurrency exchange is best for beginners?

Reading through various best crypto exchange reviews online, you're bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. While some are more straightforward and beginner-friendly than others, you shouldn't encounter any difficulties with either of the top-rated exchanges. That said, many users believe that KuCoin is one of the simpler exchanges on the current market.

What is the difference between a crypto exchange and a brokerage?

In layman's terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person. The exchange platform (i.e. Binance) acts as a middleman - it connects you (your offer or request) with that other person (the seller or the buyer). With a brokerage, however, there is no “other person” - you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party. When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term - exchange. This is done for the sake of simplicity.

Are all the top cryptocurrency exchanges based in the United States?

No, definitely not! While some of the top cryptocurrency exchanges are, indeed, based in the United States (i.e. KuCoin or Kraken), there are other very well-known industry leaders that are located all over the world. For example, Binance is based in Tokyo, Japan, while Bittrex is located in Liechtenstein. While there are many reasons for why an exchange would prefer to be based in one location over another, most of them boil down to business intricacies, and usually have no effect on the user of the platform.

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