A new research conducted by the Crypto Fund Research has been re-shared a lot of times by many best cryptocurrency news sites – indicating that the value of cryptocurrency funds has declined by 40% from 2018 to 2019.
We all know that crypto was originally meant to be a tool for financial freedom. Even though there were a lot of entities that brought together different coins in what defines cryptocurrency funds, there have been a lot of ups and downs in the movement of Bitcoin and other alt coin assets.
From what we saw, cryptocurrencies are ideal for storage but not that good as an investment vehicle. In fact, this is what the Crypto Fund Research team dived into, suggesting that funds in their research were divided almost equally between Venture Capitalists and Hedge Funds, with Private Equities taking less than 3% of the total.
As the latest cryptocurrency news show based on the analytics firm projection, cryptocurrency funds would equal 2014 numbers when the price of Bitcoin was around $600. After that, the number of cryptocurrency funds shot up in number when the BTC price began rallying and topped at 238 before falling down to 145 in 2019.
The research also stated:
“In addition to the launch of new VC and crypto hedge funds, we expect existing hedge funds to incorporate cryptocurrencies in their portfolios. Likewise, existing VC firms will continue to add blockchain investments as well as launch separate blockchain funds.
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However, Crypto Fund Research also noted that 53% of the cryptocurrency funds have less than $10 million worth of assets under management. On the other end of the scale, only 5.25% of the same had more than $100 million in assets under management.
Only Galaxy Digital Assets, Alphabit Fund and Polychain Capital are among the cryptocurrency funds with more than $100 million in assets under management (AUM). Despite the total number of funds dropping down from 2019, the collective AUM has seen significant growth this year which is a good sign. Since the start of the year, the total valuation of crypto funds has shot up by 40.54% to a new total of $14.35 billion right now.
So, the key takeaway is that the coming altcoin news may feature even more cryptocurrency funds, mostly because the AUM is on a constant rise.
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