Apparently the recession reigning in the market of cryptocurrencies since the beginning of year and also legal uncertainty, are not a powerful argument for 96 cryptocurrency funds which appeared within the first seven months of the current year.
Researchers from Crypto Fund Research consider that if the tendency remains, then by the end of the year the number of cryptocurrency funds can reach 165 that will exceed indicators of 2017 in which, according to the company, 156 cryptocurrency funds appeared.
Today in the world there are 466 cryptocurrency funds, from them:
55% are hedge funds;
45% are funds of the venture capital;
3% are direct investment funds.
“According to data of our research, until the end of 2018 the number of cryptocurrency funds will only grow as the interest of investors in this market grows. However we cannot but note that rates of start of new funds are some surprising, considering a number of limiting factors, such as recession in the market and the adverse regulatory environment. The increased volatility in the cryptoforeign exchange markets attracts investors in complex cryptocurrency funds, however remains not clear as long such funds with the small track record will be able to remain in the market if the bear trend proceeds”.
Besides, according to data of a research, the total amount of assets under control of cryptocurrency funds is $7.1 billion. By the standards of the traditional financial world – it is not enough. For example, only JPMorgan Asset Management, the fourth in size hedge fund in the USA, operates assets for $47.4 billion.
Such small volumes of investment say that most likely institutional investors continue to avoid the cryptocurrency sector generally because of legal uncertainty and the shortage of the high quality and approved by regulators custodian decisions for digital assets.
Today the leader in the number of the working hedge funds is the USA:
Among the cities are in the lead San Francisco with nine cryptocurrency funds, New York (6), Singapore (5) and London follows further (4).
In August the analytical company Autonomous Next conducted a research and found out that most cryptocurrency hedge funds higher than 50% suffered losses. Among them Michael Novogratz fund Galaxy Digital LP who announced depreciation of the assets for $175 million and also Multicoin Capital and Polychain Capital recently is noted. Some funds were forced to stop activity and to sell out assets because of a long bear cycle in the market of cryptocurrencies.