The situation is so alarming. And what if this trend continues? The cryptocurrency-focused hedge fund could be kicked out.

A recent report from Bloomberg states that over 70 hedge funds related to pensions, family offices, wealthy individuals close this year. And, the new ventures started this year are half less than those launched in 2018, the report added.

“Just wait until institutional investors jump in, and they probably will keep waiting a bit longer.”

The majority of the closed hedge-fund ventures reported from North America and Europe. On the other hand, leading financial bodies like Fidelity Investments and Intercontinental Exchange (parent body of the New York Stock Exchange) have taken initiatives making easier to invest in digital assets. However, their customer base also seems to vanish at a fast clip.

The whole problem erupts amid high volatility the cryptocurrency market is reflecting. Just as in the Bitcoin scenario that made as high as 13,000 USD this year and then bounced back to its half as well. Though Bitcoin trading volume increased on Bakkt, it’s relatively low.

The dropping cryptocurrency trade and termination of crypto funds is due to two major factors. The governments’ reluctant attitude towards crypto coins and tokens regulation is a major issue causing uncertainties among investors and laymen.

But, the problem will soon be overcome as many states are adopting crypto at the national level. Even the rumors about Chinese state-owned stable cryptocurrency are all around, and Mark Zuckerberg also warned the US to embark on the new financial technology if it aspires to stay ahead in the race of superpowers.

The other major factor affecting the crypto business is “volatility.” Yes, the dramatic changes in the price of a cryptoassets are threatening for many that may leave them with no penny in the hour of need. Maybe, it may not be a big issue for a few long-term investors, but the majority of people are concerned about it.

But, stablecoins such as DNC are a solution to this problem as their value goes no lower than the actual price of an asset they are pegged with. So, even in high volatility cases, DinarCoin (DNC) price will remain equivalent to the real-time price of 4.25g of 999.9 gold. Certainly, during the days of high trading volume, it is more beneficial than a pure gold investment offering you a relatively higher return on investment.