Crypto fund Tetras Capital shuts down after 75% loss of assets

New York–based crypto fund Tetras Capital announced liquidation and return of investments after losing 75% of assets, according to CoinDesk.

According to an SEC filing, the fund had up to $34 million in assets under management. They were contributed by 65 investors, each investing at least $100,000.

TETRAS CAPITAL PARTNERS, LLC by ForkLog on Scribd

The fund specialised in trading altcoins. In May 2018, Tetras Capital opened a short position on Ethereum when the cryptocurrency traded at $700.

Tetras Capital was founded in 2017 by Alex Sunnarborg, a former analyst at investment firm Raymond James and the crypto-news portal CoinDesk. His partners were Brendan Bernstein and Thomas Garramboon, who had experience as analysts at Goldman Sachs, JPMorgan and Deutsche Bank.

According to Crypto Fund Research, at least 68 crypto hedge funds shut down worldwide in 2019. This was nearly twice as many as in 2018 (35).

Last week the same fate befell the UK’s first regulated crypto hedge fund Prime Factor Capital. The reason was tepid institutional investor interest. Prime Factor Capital gained the ability to manage assets of more than €100 million and operate as an alternative investment fund under EU laws.

As reported by PwC and Elwood Asset Management Services, total assets under management by cryptocurrency hedge funds doubled in 2019 to reach $2 billion.

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