Despite the recession and legal uncertainty, during the first seven months of this year there was 96 new cryptocurrency hedge funds.
New Crypto Funds Are Being Launched at a Record Pace in 2018 https://t.co/eWV6yo6tPL
— Crypto Fund Research (@CryptoFResearch) 8 August 2018 R.
According to researchers Crypto Fund Research, if the trend continues, in annual terms, this number will reach 165 and, thus, exceeds that of last year (according to the company, in 2017 appeared 156).
The number of running CryptoRandom for years
Currently in the world there are 466 cryptocurrency funds. Of them:
— 55% — hedge funds
— 42% of venture capital funds
— 3% — private equity funds.
The structure of CryptoRandom types
“We expect that by the end of 2018 will see a large number of cryptocurrency funds designed to meet growing investor demand. However, the pace of launching new funds are somewhat surprising, given constraints such as depression in the market and not so favorable regulatory environment in many regions. Although the volatility of the cryptocurrency markets can attract investors in a sophisticated and contemporary criptology, it remains unclear how the industry will support such a large number of companies with little track record in the long bear market”, the researchers said.
Also in Crypto Fund Research noted that total assets under management of CryptoRandom is $7.1 billion Is a very small amount compared to the “top” companies in the traditional financial market. So, the fourth-largest U.S. hedge Fund is JPMorgan Asset Management manages assets in the amount of $47,4 billion.
According to researchers, a small amount of investment suggests that institutional investors continue to shy away from cryptocurrency mainly because of the legal uncertainty and lack of high quality and approved by the regulators custodial solutions for digital assets.
The undisputed leader in the number of operating hedge funds are the United States:
Among the cities leading San Francisco (9 funds), followed by new York (6), Singapore (5) and London (4).
ForkLog previously reported that the majority of cryptocurrency hedge funds, mostly opened in 2017, suffered significant losses.
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