Crypto Hedge Funds Raise Hundreds of Millions of Dollars, Even on Downtrend

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In the past eight months, the valuation of the crypto market has declined by more than 76 percent, from $900 billion to $215 billion. Yet, crypto hedge funds have raised more money than ever before. 1-year chart of crypto market valuation, provided by CoinMarketCap Demand is Accelerating on a Downtrend In July 2018, Barry Silbert’s Digital Currency Group subsidiary investment company Grayscale disclosed raising $248 million in the first quarter of 2018, bringing its portfolio valuation to $2 billion. In an official report, the Grayscale team stated that the demand for its hedge fund and the investment vehicles the company oversees and have seen an unprecedented acceleration rate. The team wrote: “As the investment community knows, over the last six months, the digital asset market experienced one of the largest price drawdowns since the inception of Bitcoin in 2009. However, what is more interesting, and somewhat counterintuitive,