Josh Gnaizda, founder of Crypto Fund Research, said, “While crypto hedge funds constitute a small portion of hedge fund assets, they are one of the fastest growing sectors in the hedge fund industry. In addition, many venture capital funds are including cryptocurrency and blockchain assets in their existing portfolios, or creating new funds specifically to invest in digital assets.”
Most US-based crypto funds are not registered with the SEC. Most will file a form D, but not be required to file for an SEC registration number under The Investment Company Act of 1940.
Since most crypto fund launches have been small, most qualify as an exempt advisor and are not required to register.
The CFTC has given guidance that it considers cryptocurrencies like Bitcoin and Ethereum to be commodities and may therefore have certain jurisdiction over crypto funds.
It is likely there will be more guidance in 2018 and 2019 with greater oversight and registration of cryptocurrency funds.
This article has been republished with permission from Value Walk.