Crypto Hedge Fund Costs? Invest $100k and Here's How Much You'd Pay

Nobody works for free – least of all hedge fund managers.

So, despite their investments in bitcoin, ether and other emerging digital assets, there are certainly no major leaps in how cryptocurrency hedge funds appear to be calculating their costs.

All crypto hedge fund managers get paid in the fees they charge to investors – and, just like in traditional markets, those fees aren't always easy to understand. Calculating the costs and possible return on your investment can prove challenging, given that fee structures are often described in ways that marry the worst aspects of legalese with the wonky accounting of tax documentation.

To shine a light on how these costs work, CoinDesk obtained a copy of a fee structure for a cryptocurrency fund. The following example is loosely based on a product now actively available in the market, but greatly simplified to make its terms and conditions easier to parse.

CoinDesk assumed a $100,000 investment in a fund with a vanilla "two and 20" fee structure that earns a 10 percent gross return.

Read more @ the source: https://www.coindesk.com/crypto-hedge-fund-costs-invest-100k-and-heres-how-much-youd-pay/