Research: 466 Crypto-Funds

[Paha87]

This year, the number of hedge funds and venture capital funds working with cryptocurrency is growing rapidly, reaching a total of 466, despite the bearish market trend and continued regulatory uncertainty. According to a new study, 96 new funds were founded by the end of July.

96 new crypto funds, founded in 2018
In a year of falling prices across the Board, a stubborn bearish market trend and constant regulatory uncertainty, one might think this might not be the best time to dive deep into crypto. Some, however, see opportunities in the current situation. Recently published data show that 96 new cryptocurrency hedge funds and venture capital funds were created before July 31 this year.

According to a study conducted by Crypto Fund Research, which is engaged in the study of marketing information on investment crypto-currency funds, 2018 is actually on the way to overcoming the record of 2017 when it comes to the number of launches of crypto-funds. If the current rate of opening new crypto investment funds continues, their number is projected to reach 165 by the end of the year, compared to 156 new funds opened last year.

According to the study, the cities with the largest number of new cryptocurrency funds are San Francisco (9), new York (6), Singapore (5) and London (4). Cities such as Austin, Dallas, Hong Kong, Philadelphia, San Diego, Tokyo and Zug, where the Swiss crypto valley is based, have also become the place to launch several funds this year.

According to another conclusion of the study, more than half of all existing crypto funds have been created over the past 18 months. "Their total number has reached 466 worldwide," crypto Fund Research says. The founder of the research company Josh Gnaizda commented:
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"We expected a large number of new cryptocurrencies to come out in 2018 to meet the growing demand of investors. However, the pace of new Fund launches is somewhat surprising, given the obstacles to lower prices and a less favourable regulatory environment in many regions."
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                                                                  Is there enough space for everyone?

The authors of the study note that if 2017 was the "year of bitcoins", 2018 becomes the "year of crypto funds". They also note that while investors are waiting for regulatory decisions on new investment mechanisms, such as the regulatory framework for bitcoin-ETF from Vaneck Solidx, crypto-Fund managers are creating new funds in the hope of taking advantage of what they consider to be "an unsatisfied demand for cryptocurrency investments."

In further comments, Mr. Gnaizda expresses doubts about the ability of the crypto-sphere to place so many funds in the current environment: "Although the volatility of the crypto-markets may attract some investors to complex crypto-funds, it remains unclear whether the industry will be able to support such a large amount of funds with limited experience if the bear market continues."

Despite the impressive growth in the number of crypto — funds, the capital they control remains limited-totaling about $7.1 billion, and researchers emphasize that this is much less than many traditional hedge funds. At the same time, most institutional investors are still waiting on the sidelines, and many crypto Fund managers hope that this will change in the near future.

Link to the source of information ( Russian) - https://altstake.io/news/issledovanie-466-kriptofondov

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