Despite the recession and legal uncertainty, during the first seven months of this year, 96 new cryptocurrency hedge funds appeared.
New Crypto Funds Are Being Launched at a Record Pace in 2018 https://t.eWV6yo6tPL
– Crypto Fund Research (@CryptoFResearch) 8 September 2018 р.
According to the researchers of Crypto Fund Research, if the trend continues, then in annual terms this number will reach 165 and, thus, will exceed the figure of last year (according to the company, in 2017 there were 156).
Number of running crypto funds by year
Currently in the world there are 466 cryptocurrency funds. Of them:
– 55% – hedge funds
– 42% – venture capital funds
– 3% – private equity funds.
The structure of crypto funds by their types
“We expect that by the end of 2018 a large number of cryptocurrency funds will emerge, designed to meet growing investor demand. However, the pace of the launch of new funds is somewhat surprising, given the constraints such as market depression and the less favorable regulatory environment in many regions. Although volatility in cryptocurrency markets may attract investors to sophisticated and modern crypto funds, it remains unclear how the industry will support such a significant number of companies with a small track record in a long bear market , ”the researchers note.
Also, Crypto Fund Research notes that the total volume of assets under the control of crypto funds is $ 7.1 billion. This is a very small amount compared to the “top” companies of the traditional financial market. For example, JPMorgan Asset Management, the fourth largest US hedge fund, manages $ 47.4 billion in assets.
According to researchers, small amounts of investment suggest that institutional investors still shy away from cryptocurrencies mainly due to legal uncertainty and the lack of high-end digital asset approved custodial solutions by regulators.
The undisputed leader in the number of working hedge funds are the USA:
San Francisco leads the cities (9 foundations), followed by New York (6), Singapore (5) and London (4).
Earlier, BlockchainJournal reported that most cryptocurrency hedge funds, which mostly opened in 2017, suffered significant losses.
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