From 34 million to 8.5 million? Cryptocurrency hedge fund specializing in altcoins incurs 75% loss and announces closure.

According to reports, Tetras Capital, a cryptocurrency hedge fund management company focusing on altcoin trading, announced its closure due to nearly 75% loss of funds. Data from Crypto Fund Research shows that last year, about 70 hedge funds focused on cryptocurrencies shut down.

Tetras Capital Shuts Down Due to Losses

According to reports, an insider disclosed to blockchain media Coindesk that Tetras Capital, established in 2017, has announced its closure due to underperformance (reportedly a loss of about 75% to date) and is currently in the process of returning remaining funds to investors.

Tetras Capital is a New York-based cryptocurrency hedge fund management firm jointly managed by analysts from Raymond James Financial and prominent investment banks. Launched in 2017, the fund primarily focused on trading altcoins. According to a news interview and fund investment reports, Tetras' most notable transaction was shorting Ethereum (ETH) in May 2018 at $700.

According to regulatory documents from the U.S. Securities and Exchange Commission, the hedge fund management firm originally managed around $34 million in assets with approximately 65 investors, each required to invest a minimum of $100,000.

Multiple Hedge Funds Shut Down in the Past Two Years

There have been numerous cryptocurrency hedge funds closing in the past two years. Prime Factor Capital, a UK-based cryptocurrency hedge fund, was the first crypto fund licensed by the UK regulatory authority, but was forced to close last week due to a lack of institutional investor demand. The CEO of the company stated in an interview last week:

"Despite the fund's ability to achieve over 4% average monthly returns, it had to be closed due to insufficient demand from institutional investors."

According to data from Crypto Fund Research, about 70 cryptocurrency-focused hedge funds closed last year. The research firm indicates that there are currently 355 cryptocurrency hedge funds in the market.