The explosive growth of cryptocurrency values has drawn in some of the investment world’s biggest players - hedge fund managers. Over the past six months, the number of crypto-focused hedge funds has exploded, moving from around 70 in August to more than 120 at the end of October.

In the last year alone, according to CNBC, more than 90 cryptocurrency funds have launched, bringing the net total to 124. These funds have more than $2.3 bln under management, with a third of the total using venture-capital style investment strategies.

The most notable addition among these is the $500 mln fund launched by Galaxy Investment Partners founder Michael Novogratz. The famous investor has publicly shared his view that lots of money can be made with digital currencies, even as the market moves.

More to come

This explosion in crypto hedge funds may be just at the beginning stages, with the sudden surge in ICOs. In spite of the recent closure of certain markets like China, and the tightening of regulations in the US, ICOs have continued their sizable move forward.

Many past ICOs have now either failed, or lost some of their initial positive news, with Tezos being first in the group. Nevertheless, the potential for substantial returns has kept many investors digging for the next digital gold mine.