The number of hedge funds focused on trading cryptocurrencies more than doubled in the four months to Feb. 15, despite sharp falls in the value of the virtual coins in recent weeks, data from fintech research house Autonomous NEXT showed on Thursday.
The firm recorded a record high of 226 global hedge funds with such a strategy, up from 110 global hedge funds as of Oct. 18. That itself was up from 55 funds at Aug. 29 and just 37 at the start of 2017.
Assets under management hit between USD 3.5 and USD 5 billion, according to the firm.
The surge in funds comes at a volatile time for the cryptocurrencies they trade in. After hitting a record high close to USD 20,000 in December, bitcoin lost 70 percent of its value to slip below USD 6,000 in January, posting its worst monthly performance in three years.