Even though since the beginning of 2018, the value of cryptocurrencies has significantly declined, it doesn’t paint the entire picture of the industry. The crypto fund space has grown significantly in size. Crypto assets under management now value over $7.1 billion in the market whereas the figure stood at $2.2 billion exactly a year ago, showing a 223% rise.
The year so far has seen 96 new crypto fund launches, with a forecast for the year closing at around 165. In contrast, 2017 recorded 156 new crypto fund launches. The number of assets under management rose from $675 million to $5.9 billion. Hedge funds largely dominate the universe of over 400 cryptocurrency investment funds currently. There are also a large number of venture capital funds for blockchain and cryptocurrency.
Even the crypto hedge fund index has delivered an annualized return of 162.79%. The index is an evenly weighted index of 17 constituent funds. Base weighted at 100 in June 2013, the index is designed to provide a broad scope of the production of underlying hedge fund managers that allocate to Bitcoin and other cryptocurrencies.
Just by looking at the graph it must be clear that 2017 was an exceptional year for both cryptocurrencies and crypto funds, which delivered a whopping 1708.50% return. With this year’s tally is still at -45.58%, however, April was a good month, recording +43.80%.