According to analytics companies Autonomous Next, the number of active cryptocurrencies funds has reached 312 – a 24% increase from the end of last year.
The number of virtual currencies funds has significantly expanded in recent years, growing by 456% since the end of 2016, and 791% since the end of 2015 – according to Autonomous.
Despite the milestone, 2018 has so far produced the lowest percentage increase in the some crypto funds year-over-year, with the number of cryptocurrencies funds growing by 124% heading into 2015, 30% heading into 2016, 60% heading into 2017, and 348% at the at the end of last year now.
The vast majority of new funds began operations during the second quarter of 2018. During the first quarter, only 20 new funds opened their doors, whilst 9 funds ceased trading. According to the report, “The number of cryptocurrencies funds is highly correlated with both ICO fundraising and the market capitalization of (BITCOIN).
Cryptocurrencies Funds Manage $7.5 Bn – $10 Bn USD Collectively
Autonomous Next estimates that the total sum managed by all currencies funds is approximately between $7.5 billion and $10 billion.
The report also finds that the cryptocurrencies fund industry is highly centralized, approximating that the 10 largest companies manage roughly 43% of the industry’s cap, and that the 50 largest currencies account for 80% of managed capital.
Hype Surrounding Cryptocurrencies Funds Grows
The markets have just bullishly to news of Van Eck’s application for a bitcoin-back exchange-traded fund with the United States Securities and Exchange Commission.
Some analysts are critical of the apparent institutional thirst for vitualcurrencies, with Michael Chang of crypto currencies advisory firm, Wachsman, recently stating: “I’d say that there is little to no appetite to put client money into digital assets right now.
Niklas Nikolajsen, co-CEO of Bitcoin Suisse, believes that the whilst “Institutional engagement it is limited[, …] it used to be zero & it is now well above that.” Mr. Nikolajsen added: “Bitcoin used to be immeasurable in market size, but is now about 1% of the gold market—a traditional hedge against virtual currencies—and 1% of the multitrillion-dollar gold market is not a small thing.