The SEC began to request the crypto-currency hedge funds for information on their operational activities, Bloomberg reports. The regulator is interested in the methodology for evaluating crypto assets, as well as their storage system.
As part of its check, the SEC recently sent a number of requests to crypto-focused hedge funds asking how they price digital investments and seeking information on their compliance with rules meant to prevent the theft of investors’ cash.
The SEC has taken a very deliberate approach in this space. I think they are just trying to get a handle on the large ecosystem.
Peter Van Valkenburgh
Director of research, Coin Center
The number of crypto-currency hedge funds exceeds 220. Of these, 187 have opened since the beginning of 2017. Since most of these companies manage assets of less than $ 150 million, they do not need to register with the SEC.