According to a new study conducted by the Crypto Fund Research, the world is now 466 cryptocurrency investment funds. The majority of them (255) operated as hedge funds. This category 195 is venture capital funds, and 16 private equity funds.
Based on current indicators, the researchers suggest that in 2018 there 165 new cryptocurrency funds, which is slightly higher than the same period in 2017, when there were 156 organizations.
With regard to asset management, most funds possess a capital of $10 million or less. Only 28 of them have the means more than $100 million Into this latter category includes Arrington XRP, Galaxy Digital Assets Mike Novogratz, Polychain Capital and others. All funds collectively manage assets of approximately $7.1 billion.
Josh Gnaizda, the founder of Crypto Fund Research that finds the increase in the number of hedge funds surprising given the drop in prices of cryptocurrencies. In particular, Gnaizda said:
We expected that in 2018 there will be many new cryptocurrency funds in response to growing demand from investors. […] But the pace of launching new funds, we are surprised by considering two limiting factors: the fall in prices and not a favorable legal realities in many countries.
While cryptocurrency funds own relatively modest assets, according to experts, the situation may change thanks to institutional investment. The owner of Galaxy Digital Assets Mike Novogratz calls the conditions of their involvement:
I think the next step will require a reliable storage and greater transparency in terms of relevant legislation.
It is noteworthy that the platform digital asset Bakkt from the company ICE intends to provide in November of 2018, “the possibility of physical storage assets with the approval and under the supervision of the Commission on commodity futures trading”, and recently Goldman Sachs repeatedly announced plans to organize for its customers a management service savings in bitcoins.
According to Brian Kelly, a well-known cryptocurrency trader and founder of investment company BKCM, the interest of institutional investors in this field have grown:
…Judging from the appeals to me, people who in December was looking at bitcoin with contempt and found the price unacceptable, now back, saying, “Well, this phenomenon does not disappear, and we need to understand what it is, how the asset class can take in our portfolios”.