Economic Crisis Causes Crypto Hedge Funds To Strike Big, Bitcoin DominatesAuthor: Ali RazaLast Updated: 14 June 2020 All across the globe, the economies of the world are suffering from the COVID-19 pandemic. However, Bitcoin’s economy has managed to stay strong. This is due to the Bitcoin halving, a severely bullish event, occurring at just the right time to kick it back into shape. On the 7th of May, Bitcoin even managed to slip over the $10,000 mark ever so briefly but has recently dropped down below the $8,700 mark at the time of writing.Hedge Funds Experiencing BoostsWith this massive influx of volatility, crypto hedge funds have been gaining the brunt of the benefits thereof. An example of this would be Blockforce Capital. A co-founder of the hedge fund, Eric Ervin, stated that the returns for the funds are up by 18% so far in 2020.Ervin explained that Blockforce is managing to capture half of the upside in these volatile months, having started in March when the Coronavirus pandemic hit the world in full force. With this in mind, Ervin explained that Bitcoin had taken a significant amount of market share back from Ethereum. As Bitcoin dominates, Ethereum is in the process of recovery as well, but not as bullish as BTC’s recovery.BTC Stands StrongHowever, it should be essential to note that initially, BTC dropped like a stone during the volatile market times, only recently recovering as its halving event looms ever-closer. Even so, hedge funds are reaping the rewards. Elwood Asset Management and the PricewaterhouseCoopers (PwC) both released an annual report on Monday. Through this report, it can be gleaned that the value of assets under management within crypto hedge funds has gone up to $2 billion. This stands as more than double the number it was back in 2019.Henri Arslanian is a partner at PwC, having co-authored the report that surveyed more than 50 funds. Through this, Arslanian observed that more crypto funds buy Ethereum (ETH) than any other crypto derivative, standing at 67% of the funds. However, it should be noted that Bitcoin is still the supreme form, being traded by 97% of the firms.Overall Increase In Crypto SentimentArslanian also noted that the COVID-19 pandemic has caused a larger number of investors to ask how hedge fund managers reduce the various counterparty risks. An example of this, Arslanian notes, would be not leaving too much money on any single exchange platform. The more these concerns are quelled, the more investors start to become eager to take part, according to Arslanian.During an interview, Arslanian took notice of a new macro trend, as well. According to him, the coronavirus has caused the general interest in cryptocurrencies as a whole to start to increase thanks to the COVID-19 crisis.