Crypto funds nosedive 43% in 2018: report |

Crypto funds nosedive 43% in 2018: report

Peter Terlato 19 April 2018 NEWS

Digital currencies have experienced intense volatility since prices peaked in December last year.

New data released this week shows cryptocurrency funds have suffered a significant fall from grace since the beginning of the year, highlighting the extremely speculative and volatile nature of these unseasoned assets.

The Barclay Cryptocurrency Traders Index, composed by BarclayHedge – a US-based investments portfolio management company – measures the average return of all cryptocurrency programs in the Barclay database.

The statistics reveal that in January 2018 cryptocurrency funds lost 11.63%. In February, the funds fell further, down 9.04%. March saw the worst declines, as the digital currency funds slipped again, tumbling by 29.15%.

Year-to-date, the estimated performance of BarclayHedge’s cryptocurrency funds is currently -43.05%.

The index is simply the arithmetic average of the net returns of all the programs that have reported that month. There were between 12 and 19 different funds available for evaluation during the first quarter of 2018. These funds trade bitcoin and other alternative cryptocurrencies.

In early December 2017, the largest U.S. options exchange, CBOE, launched bitcoin futures trading, offering investors their first opportunity to bet on whether the leading cryptocurrency’s value will rise or fall over time.

Bitcoin futures trading guide: what it is, how it works and where to start

“Within days of the launch of bitcoin futures, bitcoin rose to its all-time high of just under $20,000 on December 18 last year. Today’s prices are just over $8,000,” BarclayHedge president and founder Sol Waksman said in a recent statement. “Folks have their opinions, but no one really knows if it’s a bubble or a correction.”

Comparative data sources

Autonomous NEXT – a UK-based fintech practice within independent firm Autonomous Research – which tracks 251 cryptocurrency funds, suggests that there is “a bear narrative in the air about ICOs and cryptocurrencies”.

“It starts out by suggesting that last year was a bubble around bitcoin, that many unscrupulous parties tried to jump on the bandwagon and take naive investors’ money. This spilled out in the fintech, crypto and public markets… And on top of this, regulators across the globe are recognizing initial coin offerings for what they are – unregistered securities offerings from unlicensed institutions,” researchers said in a Q1 review report.

However, Autonomous NEXT doesn’t agree with this line of thinking. Analyzing $1 million + initial coin offerings (ICOs) over the first three months of 2018, the company witnessed $3.5 billion worth of capital flow into tokens.

“Now, there is some underlying slow down relative to November and December of last year, and the number of projects starting fund-raising in March is lower. Some high profile companies are choosing to airdrop instead of ICO. But at a high level, the crypto economy is going to be far bigger this year than last year,” the firm said.

An ICO is when a company sells a new cryptocurrency coin to the public for the first time. It’s designed to spread the new currency widely and make sure it has plenty of investors and to encourage further trades.

You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site