In line with a recent ‘news report‘ published by WSJ [Wall Street Journal], Polychain Capital – Cryptocurrency hedge fund saw its assets beneath the management [AUM] fell from an earlier $1 Bln high to around $591.5 Mln in Q4 last year .
The WSJ’s sources attributed the steep fall to a drop in the price of its fund’s holdings amid a lengthy cryptocurrency bearish ‘market‘, “rather than the […] redemptions by investors.”
While the hedge fund saw a roughly 40% drop in the price of its AUM from April to December last year, total cryptocurrency market capitalisation drop to around more than 50% over the same period of time, in line with data provided by ‘CoinMarketCap‘.
Polychain Capital which is San Francisco-headquartered collaborated with the cryptocurrency hedge fund space in 2016.
The fund’s recent investments embrace backing ‘stablecoin‘ plans from ‘blockchain‘ payments startup named ‘Celo’ earlier in April [along with the cryptocurrency venture firm named ‘Andreessen Horowitz’], and physically delivered crypto futures ‘Coinflex exchange’ in March – along with another renowned crypto VC firm, Digital Currency Group.
As ‘reported‘ earlier, an analysis at the beginning of this year revealed that within the wake of the last year, cryptocurrency market collapse, the launch of new crypto venture funds for the primary time exceeded that of new hedge funds within the ecosystem.