Hedge Fund That Made 60X Return on Volatility Now Takes Opposite Position

Austin, TX based hedge fund Houndstooth Capital Management earlier made a 6000% return by betting on volatility. They did this by betting against an ETF linked to low volatility.

Now, however, Houndstooth is betting on the opposite. Sort of. They aren't actually betting volatility will stay low, but instead have targeted a weakness or design flaw inherent to ETFs like ProShares Ultra VIX Short-Term Futures ETF.

According to Bloomberg, "The theory is that after an initial spike there will be a snapback in vol that will decimate the product." In fact, Houndstooth thinks after a large spike in volatility, the snapback could decimate the product in a matter of hours or days.

New Crypto Fund Launches 2018

Crypto Hedge Fund Launches for 2018

Crypto funds have been launching at an extraordinary rate. In 2017 there were launches of more than 100 new crypto hedge funds and venture capital funds. The rate is expected to accelerate with as many as 140 new crypto funds expected to launch in 2018. Below is a list of new crypto funds that were launched in 2018 (through January 31, 2018).

Crypto Fund	Location	Website
Blackmoon Crypto	Cyprus	https://blackmooncrypto.com/
Block View Capital	United States	https://www.blockviewcapital.com
BullCoin Gold	Singapore	https://bullcoin.gold/
ChainLink Crypto Fund	United States	http://telegra.ph/Crypto-Fund-Research-06-28
MyBit	Switzerland	https://mybit.io/
Neufund	Germany	https://neufund.org/
Palmy Fund	United States	https://www.palmyfunds.com/
Prime Factor Capital	United Kingdom	https://www.primefactor.capital
Symmetry Fund	Cayman Islands	https://symmetry.fund/
1confirmation	United States	http://www.1confirmation.com

List of 416 Crypto Funds Including 2018 Launches

Top 10 Crypto Funds

The Top 10 Crypto Hedge Funds

Below is a list of the top 10 crypto funds. These funds invest in cryptocurrencies, ICOs, and blockchain companies. The list of crypto funds is compiled based on overall prominence and listed in alphabetical order. 

1) Arrington XRP Capital

2) BlockTower Capital

3) BKCM

4) Fenbushi Capital

5) Galaxy Digital Assetes

6) The Logos Fund

7) MetaStable Capital

8) Pantera Capital

9) Polychain Capital

10) Protocol Ventures

Download a complete list of crypto hedge funds

Crypto Funds - The Quickest Growing Hedge Fund Strategy

Crypto Funds Being Launched at Record Pace

What's the fastest growing segment of the hedge fund world? If you've been paying attention, this might not be a surprise - it's cryptocurrency hedge funds. In fact, more than 70 crypto funds were launched in 2017, more than the amount launched in all preceding years.

Cryptocurrency hedge funds invest in existing cryptocurrencies like Bitcoin and Ethereum, Initial Coin Offerings of new cryptos, or in blockchain companies. Collectively, hedge funds investing in these digital assets have exploded. This is largely due to a growing perception that cryptocurrencies are gaining legitimacy as investments. Of course, the huge increases in crypto prices in 2017 play a large role in this as well. Bitcoin, for example, was up more than 1200% in 2017. A large number of crypto hedge funds were launched in the latter part of 2017 according to research from Crypto Fund Research. 

It remains to be seen what the effect of falling crypto prices in 2018 will have on existing crypto funds as well as the launch of new crypto hedge funds. 

While the number of new crypt fund launches was extraordinary, it's important to keep in mind assets are still quite low. In total, crypto funds have a little over $3.1 billion in assets, or less than .1% of total hedge fund assets. That number is expected to grow significantly as investors open up to crypto funds, and cryptocurrencies in general.

Crypto Fund Resources

Crypto Fund Infographic

Crypto Hedge Fund List

Top 10 Crypto Funds

2018 Crypto Fund Launches