The recent decline of the Bitcoin price scratched the surface to a lot of possibilities in the world of Bitcoin and put a large dent in profit projections for hedge funds oriented in crypto assets. However, the good thing is that funds like these are always on the increase – and there are now more than 300 of them – which is a record number worldwide.
One source confirmed this. According to the research conducted by Autonomous Next, the number of cryptocurrency funds went over 300 in 2018 – and there are now 312 up and running cryptocurrency funds which marks another milestone completed this month.
In other words, the number of crypto-related funds increased by 24% from the previous year, coming from a number of 251 funds which were operational then. Additionally, the 312 crypto funds present nowadays represent a 457% surge from the 56 existing in 2017.
According to the source, the majority of these crypto funds opened in the second quarter of the year. The researchers also found that the number of these funds is in a strong relation with Bitcoin’s appreciation. However, the main reason why the new funds have been opening like crazy over the second part of this year is their activity surrounding initial coin offerings (ICOs).
What’s important to note is the fact that these cryptocurrency funds collectively manage between $7.5 billion and $10 billion in assets nowadays – even though most of this capital surrounds the largest funds.
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