New York-based cryptocurrency hedge Fund Tetras Capital announced the closure and refund of funds to investors due to unprofitability and losses that amounted to 75% since the Fund opened.
Tetras Capital, founded in 2017, specialized in trading altcoins. The founder of the Fund was Alex Sunnarborg (Alex Sunnarborg), a former analyst of an investment company and information portal Coindesk. He managed the cryptocurrency Fund together with partners Brendan Bernstein and Thomas Garrambone, who worked as analysts at investment banks Goldman Sachs, JPMorgan, Deutsche Bank and Torreya Partners.
According to a financial report from Tetras Capital prepared for the us securities and exchange Commission (SEC), the Fund managed assets worth more than $33 million, and also collaborated with 60 investors. The minimum Deposit for each investor was $100,000. According to the management of Tetras Capital, in may 2018, the Fund opened a short position on ether at a coin price of $700. Now the Fund has joined the ranks of firms that suffered losses due to the fall in the exchange rate of cryptocurrencies after the “altcoin boom” in 2017.
According to Crypto Fund Research, about 70 cryptocurrency hedge funds around the world closed last year. This figure is almost double the figure for the year before last. In 2018, about 35 cryptocurrency funds stopped operating. Last week, it also became known that the hedge Fund Prime Factor Capital was forced to declare liquidation, despite having a license from the UK financial Supervisory Authority (FCA). The reason for the closure was insufficient demand from institutional investors.
However, the President of the company Digital Fidelity Assets (FDAS) Tom Jessop believes that the cryptocurrency industry is only developing, so closing cryptocurrency hedge funds is a natural process and a “classic early stage” of its development.