06 Dec 2019 Simon Briggs
Almost 70 Crypto Funds Closed Doors In 2019
The crypto market matures with every single day, despite the bearish winter of 2018 and the uncertain 2019. And while almost 70 crypto-oriented funds have shut down operations, twice as many funds started operating in 2019.
Most of the funds, which closed doors were crypto hedge funds, oriented towards wealthy persons, family offices, and asset management companies. North America leads the pack with 28 funds closed in 2019, with Europe being second with 23 funds suspending operations.
The figures, gathered from the California-based market data provider Crypto Fund Research, shows an increasing number of crypto-oriented funds in the long run. For example, 2017 marks an all-time high in crypto fund launches with 291 crypto funds. 2018, despite the bearish push, marked 284 new crypto funds launched.
The report also notes that the majority of the funds are holding less than $10 million worth of crypto assets. By contrast, 60 funds claim to manage over $100 million worth of crypto assets. Some of the most significant crypto-based funds include Galaxy Digital, Alphabit Fund, Pantera Capital, and Polychain Capital.
And while 2019 has been a rough year for the crypto industry, the total amount of assets managed by the crypto fund increases. For example, in 2016, crypto funds managed $190 million, and in 2019 that figure increased to $19 billion. Despite the price fall across the industry, crypto funds are growing exponentially both in numbers and the amount of crypto assets managed.
The analysis concludes that over 800 crypto funds are now operating worldwide, with over 400 of them working in the United States. Seventy-nine of the U.S.-based funds are in San Francisco, and New York is falling slightly behind with 74 funds.Cryptocurrency Crypto Market cryptocurrencies investment Crypto Funds