Investing in bitcoins? Beware, hedge funds are growing wary of crypto mania

Their caution is the latest sign of doubt among investors that the red-hot rise of bitcoin and its ilk is sustainable

Hedge funds that rode the wave as cryptocurrencies surged last year have turned cautious, the latest sign of doubt among investors that the red-hot rise of bitcoin and its ilk can be sustained. 

Bitcoin's more than thirteen-fold rise in 2017 helped fuel a stellar year for the still-small number of hedge funds dedicated to cryptocurrency investing. An index of around 17 cryptocurrency hedge funds from data provider Hedge Fund Research Inc rose almost 3,000 per cent in 2017 — light years ahead of the 8.7 per cent average return across the global hedge fund industry.

Several crypto-focused funds now say