Hedge funds come in all shapes and sizes, so it's no surprise that the investment vehicles are springing up in one of the hottest areas in financial markets: cryptocurrencies.
Autonomous NEXT, a fintech analytics firm, released a list of 55 cryptocurrency hedge funds on Tuesday, Business Insider reported.
'Crypto' funds include Alphabet Coin Fund, Blockchain Capital, Crystal Lotus, Digital Developers Fund, Science Inc., and The Token Fund, according to Autonomous NEXT. Soros Fund Management is also listed.
"Like wild mushrooms, crypto hedge funds have been taking root in the volatile and unregulated soil of the crypto economy," Autonomous NEXT said, according to the BI report.
Many of the firms sport crypto-themed names such as Ether Capital, an homage to the token powering the ethereum blockchain, and Medici Crypto, which just launched on August 22 and is backed by tech billionaire and "Shark Tank" star Mark Cuban.
Even traditional hedge funders are paying attention, BI reported. "We have seen managers invest in the actual currencies and/or in the ICOs, and soon there will be derivatives as well,” Steve Nadel, a hedge fund attorney, and partner at Seward & Kissel, told BI.