A few years ago, crypto hedge funds were all the rage. As cryptocurrencies rose in value, hundreds of hedge funds specializing in digital assets launched to try and capitalize on investor demand. Some of these funds recorded double-digit gains in 2020 and 2021 as cryptocurrencies surged in value. However, this year, cryptocurrencies have been under pressure, and leveraged hedge funds are beginning to crack under the strain. Three Arrows Enters Liquidation The highest-profile collapse so far is Three Arrows Capital, which entered liquidation on Wednesday after a British Virgin Islands court ruled in favor of creditors seeking repayment of debts….
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