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A protracted bearish cryptocurrency market has not discouraged hedge funds and other institutional actors from entering the digital currency space. According to new research, 2018 promises to be a record year for encrypted funds, with the constant increase in the number of new companies
Crypto Funds on the Rise
A total of 96 cryptocurrency funds launched this year. year, according to Crypto Fund Research, putting the market on track to outperform last year's pace of 156. Rohnert Park, Californian research firm expects there will be a total of 165 cryptocurrency funds launched this year [19659004] "We expected a large number of new crypto funds to be launched in 2018 to meet the growing demand for investors," said Josh Gnaizda, founder of Crypto Fund Research. "However, the pace of new fund launches is somewhat surprising given the double wind of depressed prices and unfavorable regulatory conditions in many regions."
If 2017 was "the year of bitcoin", 2018 promises to be the year of the cryptic fund, says Gnaizda. There are now 466 cryptocurrency funds worldwide, with more than half of them created in the last 18 months.
Pantera Capital, one of the earliest and best-known funds, boasts a 10,000% return on life by investing in digital resources.
Crypto funds are proving to be very popular among Chinese investors, who are prohibited from investing in digital resources in their country of origin. As reported by Hacked in June, Chinese citizens have made Singapore the preferred destination for the launch of symbolic investment funds.
The researchers say that cryptocurrencies are the fastest growing segment of the market and account for more than half of the total. A total of 252 funds are located in the United States, followed by 34 in Hong Kong and 29 in the United Kingdom.
Long-Term Horror Market
Although the increase in cryptocurrencies is evidence that more investors are engaging in digital currencies, bankruptcy rates may increase if bear market conditions persist.
"While volatility in crypto markets may attract some investors to sophisticated encrypted funds, it is unclear whether the industry can support such a large number of funds, with a limited track record, if we experience an extended bear market" , added Gnaizda.
The cryptocurrency market is again becoming synonymous with bitcoin altcoins and more speculative tokens. At the time of writing, the bitcoin dominance rate, or the share of total market capitalization held in BTC, was 51.9%.
After a slight recovery, the values of the coins have decreased again on Monday. According to CoinMarketCap, the total value of all coins in circulation is $ 210.5 billion. Last week, the market hit the minimum of $ 207 billion, the lowest in a year
. A look at the technical rankings reveals little evidence that a bullish reversal is imminent. However, fundamental developments were positive with banks and stockbrokers who announced big plans to enter the market.
Disclaimer: The author owns bitcoins, Ethereum and other cryptocurrencies. It holds investment positions in the currencies, but does not carry out short-term or day trading activities.
Featured image courtesy of Shutterstock.
