An estimated $2 billion has been invested with specialist hedge funds focusing on cryptocurrencies in 2017, according to estimates from Morgan Stanley, Business Insider reported.
The investment bank made the estimate based on data from consultancy Autonomous NEXT and Morgan Stanley's own research. It came in a note titled "Bitcoin Decoded" sent to clients this week.
Hedge fund industry data provider HFR last week launched two new indices, the HFR Blockchain Composite Index and the HFR Cryptocurrency Index, meant to track investment in the space.
The two indices track only around 20 products but have data stretching back to 2015. The Cryptocurrency Index has annualized performance of 292% since inception and has surged 1,641% in 2017 through to November.
Kenneth J. Heinz, President of HFR, said in a release announcing the new products: "Investor interest in funds offering exposure to Blockchain technologies and Cryptocurrencies has surged in recent months as these innovations continue to move towards the mainstream and generate compelling opportunities for investors, portfolio managers, traders and other market participants."
But he cautions that the area is "involves substantial volatility and risks, both real and structural."