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Is the Crypto Trading Industry losing steam?

NilssonHedge covers close to 800 dedicated Crypto Strategies and is thus one of the more complete resources for investors that seek to understand the behavior of traders and positioning throughout the everchanging Digital Asset Landscape.

Number of Crypto Managers in the NilssonHedge Database

Although the number continues to “go up”, the rate of change for Crypto Managers is sensitive to last month’s performance of Digital Assets. In particular, over the last 9 months, we have seen a strong correlation between the number of new managers and the one-month lagged returns for the NilssonHedge Crypto Index. Admittedly the time horizon is short, but new managers tend to start reporting after an uptick in performance.

The correlation between Managers added to the database and the One-Month Lagged performance of the NilssonHedge Crypto index is strong (0.8).

By measuring the net creation of active managers, we note that December was the first month where the number of managers that stopped reporting was larger than the managers that started to report. We will continue to monitor this number.

Under the assumption that net new assets into the Digital Asset space is an indicator of future higher performance, a lower interest in Digital Assets may indicate that the recovery from the current Crypto Drawdown will take a longer time to recover from than during previous relatively speedily recoveries.

You can find our Crypto Database here. To measure performance we have a daily and a monthly index.

In other news, the database is updated and ready for download. We are also about to announce the winner of the AlphaWeek Tactical Trading awards for 2022.

1 thought on “Is the Crypto Trading Industry losing steam?”

  1. Pingback: NilssonHedge A Managed Futures & Hedge Fund Database Crypto Carnage – Database Updated

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