Cryptocurrency Fund Birth Rate Continues Explosion

We may see extra cryptocurrency funding funds being born in 2018 than we did in 2017, which was itself a increase 12 months, based on some new analysis.

The analysis was carried out and printed by Crypto Fund Analysis, a California-based firm that conducts cryptocurrency-centred analysis research. Info printed by this firm has been quoted within the Wall Road Journal and the Economist.

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Earlier research embody an investigation into which US cities are greatest to seek out blockchain-related jobs (San Francisco gained) and which have essentially the most blockchain startups (San Francisco and New York drew).

The newest report says that up to now 61 cryptocurrency funds have been launched this 12 months. If a relentless charge of proliferation is extrapolated from this determine, 2018 will see barely extra funds created than 2017 did (140/130 respectively).

Slightly below half of the funds had been launched within the US (29) – no different nation broke double figures. The subsequent most outstanding international locations are the UK and Australia which each noticed 4 new launches. Total, 20 international locations have registered such exercise this 12 months.

The examine discovered that just below one third of the brand new funds are of the enterprise capital selection, whereas the remainder are hedge funds. It provides that the majority of them are “still quite small”.

A number of main firms have launched blockchain-focused funding funds lately. Examples embody the Coinbase Index Fund from the American cryptocurrency change Coinbase, HB10, a cryptocurrency-based ETF from Huobi of Singapore, and OK06ETT from Hong Kong-based large cryptocurrency change OKEx this week. The Wall Road Journal reported solely yesterday {that a} companion of Sequoia Capital is leaving to launch a brand new cryptocurrency funding fund alongside Coinbase co-founder Fred Ehrsam.

It must be famous that some hedge funds have closed this 12 months too – Bloomberg reported in April that 9 funds had closed up store at that time after seeing their returns drop by a mean of 23 p.c as cryptocurrency costs tanked firstly of the 12 months.

130 new funds had been created in 2017, and solely 25 in 2016. In whole, there are 366 cryptocurrency funds at massive on the planet for the time being, of which 212 are hedge funds and the remainder enterprise capital.