New research reveals that despite falling crypto prices and an uncertain regulatory environment, 2018 breaks a record with launching new crypto funds.
The analysis from Crypto Fund Research states that 2018 is on pace to surpass the previous year for the most new crypto fund launches.
“Through July 31, there were 96 new crypto hedge funds and venture capital funds, an annual pace of 165. This would surpass the record 156 crypto funds launched in 2017. More than half of all crypto funds currently in existence have launched in just the last 18 months”.
Founder of Crypto Fund Research Josh Gnaizda remarks that there are now 466 crypto funds across the globe.
“We expected a large number of new crypto funds to launch in 2018 to satisfy growing investor demand… However, the pace of new fund launches is a bit surprising given the dual headwinds of depressed prices and less than favorable regulatory conditions in many regions”, he stated.
Top cities where crypto funds are launched include San Francisco (9), New York (6), Singapore (5), London (4). Cities like Austin, Dallas, Hong Kong, Philadelphia, San Diego, Tokyo, and Zug have witnessed multiple fund launches this year.
It is also stated that although 2017 was “the year of Bitcoin”, 2018 is shaping up to be the year of the crypto fund.
“Even though crypto funds are the fastest growing hedge fund strategy by number, overall assets are still quite meager. Crypto funds collectively manage just $7.1 billion – far less than many of the top traditional hedge funds. Most institutional investors remain on the sidelines, something many crypto fund managers hope will change in the coming months”, the research concludes.