AnalysisAltcoins

Crypto Report shows confidence in market, Crypto Funds at all-time high

  • Crypto Report shows that two-thirds of all crypto hedge funds launched between January last year and September this year
  • The bear market doesn’t scare crypto hedge funds as 90 new hedge funds launched during the ‘bear market’
  • A majority of these funds were opened in the U.S. 

A new crypto report shows that the number of crypto hedge funds is at an all-time high.

Cryptocurrencies may have shed 70 percent of their value since they peaked in December, but this has done little to dampen the enthusiasm of crypto investors.

The report revealed that 90 crypto hedge funds were launched in the first three quarters of the year and accounted for 20 percent of the hedge funds launched over that time.

The report revealed two-thirds of all the operating crypto hedge-funds were launched between January last year and September this year, a reflection of the major strides the crypto industry has taken over the past two years.

Unfazed By The Bear Market

The crypto market has not had the best year and has been battling one bear market after another. From its peak in December at $19,800, Bitcoin has lost 66 percent of its value, with Ethereum faring even worse, losing 85 percent of its value after it peaked in January.

However, crypto investors remain unfazed by the price drop, with the crypto report revealing that 90 new crypto hedge funds have been formed this year alone.

At this rate, it’s estimated that there will be at least 120 crypto hedge funds formed this year.

With the number of hedge funds founded this year estimated to stand at 600 by the end of the year, crypto hedge funds will make up 20 percent, or 1 in every 5, an impressive number for an industry that has seen one of its worst bear markets in the last six months.

It’s also a slight rise from 2017 when crypto hedge funds made up 16 percent of the hedge funds opened that year and a huge rise from the 3 percent registered in 2016.

Expectedly, a majority of the crypto hedge funds were opened in the U.S where crypto investors have continued to remain optimistic despite the regulatory uncertainty in the country.

Crypto-Friendly Countries

Some of the other countries that have also seen a rise in the number of crypto hedge funds include Switzerland, Australia, China, the U.K, the Netherlands and the blockchain island of Malta.

As noted by a report by Bitcoin.com, despite the rise in numbers of crypto hedge funds, they are still a drop in the ocean.

With an estimated 9,000 hedge funds in operations globally, the 303 crypto hedge funds in existence only account for 3 percent of the total.

The hedge fund industry also has over $3 trillion under management, a mammoth of a figure compared to the $4 billion controlled by crypto hedge funds.

The crypto report comes just two weeks after a similar one by blockchain analytics firm Diar revealed that New York-based Digital Currency Group is the leading crypto VC firm, having closed more than 110 deals over the last one year.

The firm has invested in almost all the leading crypto and blockchain platforms including Circle, Coinbase, Abra, Bitmain, Ripple, Kraken, Ledger, ShapeShift and Protocol Labs.

The report revealed that Beijing-based ASIC manufacturer Bitmain has been the most funded firm in the industry raising $400 million.

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