Falling prices for cryptocurrencies, and an uncertain regulatory environment, in 2018 haven’t deterred new crypto investment funds from opening, according to new analysis from Crypto Fund Research.
2018 is on pace to surpass the previous year for the most new crypto fund launches.
While investors await decisions from various regulators on new investment vehicles, such as the bitcoin ETF proposed by Van Eck and SolidX, crypto fund managers are setting up new funds and hoping to take advantage of what they perceive as unmet investor demand for crypto investments.
Anyways, though crypto funds are the fastest growing hedge fund strategy by number, overall assets are still quite meager. Crypto funds collectively manage just $7.1 billion – far less than many of the top traditional hedge funds.
Most institutional investors remain on the sidelines, something many crypto fund managers hope will change in the coming months.
Through July 31, there were 96 new crypto hedge funds and venture capital funds, an annual pace of 165. This would surpass the record 156 crypto funds launched in 2017.
More than half of all crypto funds currently in existence have launched in just the last 18 months.
Top cities for crypto funds launches in 2018 are:
– San Francisco (9)
– New York (6)
– Singapore (5)
– London (4)
In addition to the above, Austin, Dallas, Hong Kong, Philadelphia, San Diego, Tokyo, and Zug have all seen multiple fund launches this year.
Today, there are now 466 crypto funds across the globe. Have a look at the list here.
Crypto Fund Research provides market intelligence on cryptocurrency investment funds and also maintains a database of funds.
FinSMEs
11/08/2018