A number of crypto funds, close to 70, have successfully closed the year 2019. The starting number has, however, revealed that a great influx of the organizational investors that have invested in the crypto space might not be growing as fast as required.
But, it is important to note that the launches of the cryptocurrency funds are projected to hit 140 before the year ends. This is besides the extended 2018 cryptocurrency winter.
New Cryptocurrency Fund Launches Declines To Half The Number In 2018
In the year 2017, 291 crypto funds were introduced. They included venture capital and hedge funds. In the year 2018, the number grew by nearly the same amount, as 284 crypto funds entered the market.
When compared, just 152 had been in establishment before 2014. The following three years witnessed between 36 to 46 launches per year.
The Growing Of The Total Assets In The Market
The total number of assets that are under the management of the crypto funds have grown rapidly in the last year. This is according to the Crypto Fund Research. The growth has been witnessed despite the falling market prices. The long-term trend has been very positive.
In early 2016, the value of crypto assets that were under management grew from $190 million to more than $19 billion in 2019 October. This shows a rapid growth of the crypto fund industry in the past couple of years. The growth has never been affected by the sharp fall of the crypto funds that was witnessed last year.
Key Factors Affecting The Growth Of Crypto Assets
There are several factors that affect the growth of these assets. Some of them are the net inflows of the existing funds, the establishment of new funds, as well as the changes in the portfolio assets value.
The terms of growth for the crypto funds have done better than most virtual coins since 2016. This is based on the Cryptocurrency Fund Index. It is always calculated using data obtained from fifty funds by Crypto Fund Research.
How The Market Currently Looks
At the moment, there are 804 blockchain and crypto funds. The market is also made up of 425 cryptocurrency venture capital funds. In addition to that, there are also 355 cryptocurrency edge funds.
About 400 crypto funds have their headquarters in the United States. 84 of these establishments operate in Hong Kong, while 55 are in the United Kingdom. There are also 26 crypto funds that are based in Switzerland.
When it comes to cities, San Francisco is the city that has the largest number of funds, with 79. 74 of the funds are in New York, while London has 49. These are the leading global financial capitals.