Hedge funds are cashing in on bitcoin mania - there are now 50 dedicated to cryptocurrencies

The market for cryptocurrencies is red-hot, and dozens of crypto-focused hedge funds are looking to get in on the action.

Digital currencies, such as Bitcoin, are powered by distributed ledger technology and are not controlled by a centralized authority. The market for such currencies has exploded with over 800 coins on the market with a combined marketcap of $166 billion.

Autonomous NEXT, a fintech analytics firm, released a list of 55 cryptocurrency hedge funds on Tuesday, illustrating the mounting interest in the space.

"Like wild mushrooms, crypto hedge funds have been taking root in the volatile and unregulated soil of the crypto economy," Autonomous NEXT said in a post on their website. "So we went digging, and digging and digging," the firm added.

Many of the firms sport crypto-themed names such as Ether Capital, an homage to the token powering the ethereum blockchain, and Medici Capital. 1confirmation is one of the youngest funds on the list. It launched on August 22 and has the backing of tech billionaire and "Shark Tank" star Mark Cuban.

The meteoric rise of digital currencies such as bitcoin, which is up nearly 700% since 2016, and ether, which is up 3,300% over the same period, has drawn the attention of Wall Street. On top of this, the market for initial coin offering, a fundraising method based on blockchain technology, is exploding with over $1.8 billion raised via the ICOs since the beginning of the year, according to Autonomous NEXT.

Even traditional hedge funders are paying attention.

"We have seen managers invest in the actual currencies and/or in the ICO's, and soon there will be derivatives as well," Steve Nadel, a hedge fund attorney, and partner at Seward & Kissel, said in an email sent to Business Insider.

"Cryptocurrencies have garnered a fair amount of interest in the investment management space, primarily because of the returns they have recently shown," he said.

Here's the full list of the crypto funds, in alphabetical order: