Crypto-Hedge Funds to Break Records in 2018
Crypto Fund Research (CFR), a specialized firm involved in listing crypto funds and VC companies, 2018 will see a record-break in the number of new crypto-investment funds launched. As data has revealed, up until the end of last month, 96 hedge and VC funds have launched and sets a yearly rate of 165. Should the current rate hold steady, it'll break past the 156 record of 2017.
Apart from the newly launched funds, the analysis also reveals expectations of already operating hedge funds to adopt cryptocurrencies into business. Additionally, and similarly, currently operation venture capital firms would most likely continue investing funds into blockchain-based investments and also design, develop and launch their own BC funds.
As revealed by CFR, just over half the existing cryptocurrency funds are hedge funds, with 255 currently operational and VC funds are seeing 195 respectively. Additionally, 16 private funds are currently existing as well. As the study has stated, just as last year was centered on Bitcoin, 2018 is expected to be the “year of crypto-funds.” In addition to the information displayed by the report, it also states that 466 of the currently existing funds have seen their release within the last year and a half.
Despite this, no clear indication is evident regarding whether or not the cryptocurrency industry will be able to manage such an increasing number of funds and especially with the current downtrend on the market. The company is also leaving an open possibility of a certain pullback of all cryptocurrencies this year. Josh Gnaizda, CFR’s founder, has stated that the company is indeed waiting for a significant amount of new cryptocurrency funds to see their launch this year as demand by investors continues rising. He adds that the new rate at which these funds are launching is quite unexpected due to the decline in crypto prices and strict regulations around the world.
Among the findings within the study, CFR also revealed that half of these funds are holding under $10M in terms of assets although quite a few large ones exist as well. In total, the managed funds accumulate to around $1.7B, under 10 percent of what the largest fiat funds currently hold. Going on, half the funds also consist of very small teams with an average of about five or fewer employees working on the fund.
Around 250 of these funds exist in the United States. The UK< China, Singapore and other nations also possess significant crypto-funds.