What are cryptocurrency hedge funds, and how do they work?

Dive into the dynamics of crypto hedge funds, exploring investment strategies, risks and the evolving landscape of digital asset management.

Hedge funds, named for their original purpose of hedging against market risks, gather funds from various investors to diversify across assets, aiming to mitigate market risks.

A hedge fund is an investment fund where capital from various institutional and individual investors is combined and put toward a range of assets, including derivatives, stocks, bonds, commodities and foreign currencies, with the aim of optimizing returns. 

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Source: https://cointelegraph.com/explained/what-are-cryptocurrency-hedge-funds-and-how-do-they-work