Research Finds Number of Crypto Funds has Exceeded 300

Photo: Hassans International Law Firm

According to analytics firm Autonomous Next, the number of active crypto funds has reached 312 – a 24% increase from the end of 2017.


Number of Active Crypto Funds Reaches 312

The number of cryptocurrency funds has significantly expanded in recent years, growing by 456% since the end of 2016, and 791% since the end of 2015 – according to Autonomous Next.

Autonomous Next (Twitter)

Despite the milestone, 2018 has so far produced the lowest percentage increase in the number of cryptocurrency funds year-over-year, with the number of crypto funds growing by 124% heading into 2015, 30% heading into 2016, 60% heading into 2017, and 348% at the at the end of last year.

The vast majority of new funds began operations during the second quarter of 2018. During the first quarter, only 20 new funds opened their doors, whilst 9 funds ceased trading. According to the report, “The number of crypto funds is highly correlated with both ICO fundraising and the market cap of [BTC].”

Crypto Funds Manage $7.5 Bn – $10 Bn USD Collectively

Autonomous Next estimates that the total sum managed by all cryptocurrency funds is approximately between $7.5 billion and $10 billion.

The report also finds that the crypto fund industry is highly centralized, approximating that the 10 largest firms manage roughly 43% of the industry’s capital, and that the 50 largest firms account for 80% of managed capital.

Hype Surrounding Cryptocurrency Funds Grows

The markets have reacted bullishly to news of Van Eck’s application for a bitcoin-back exchange-traded fund with the United States Securities and Exchange Commission.

Despite such, some analysts are critical of the apparent institutional thirst for cryptocurrencies, with Michael Chang of virtual currency advisory firm, Wachsman, recently stating: “I’d say that there is little to no appetite to put client money into digital assets right now.”

Michael Chang (BlockTribune)

Mr. Chang added: “When you’re a bank like Jefferies, you have responsibilities to your clients. If you want crypto, you have to go to the specialist firms like a Pantera or a Soros Management, which is now investing in it through a separate fund. A lot of these guys have money in the big 10 coins now.”

Niklas Nikolajsen, co-CEO of Bitcoin Suisse, believes that the whilst “Institutional engagement it is limited[, …] it used to be zero [and] it is now well above that.” Mr. Nikolajsen added: “Bitcoin used to be immeasurable in market size, but is now about 1% of the gold market—a traditional hedge against currency—and 1% of the multitrillion-dollar gold market is not a small thing.”

Niklas Nikolajsen (Twitter)



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