Despite the massive drop-off in cryptocurrency prices in 2018, there has been a record growth in investment firms focused on digital currencies.
According to a recent report by Crypto Fund Research, there have been 96 cryptocurrency hedge funds and venture capital funds founded in 2018 alone, bringing the total to 466. At the current pace, the total number of crypto funds added in 2018 will be around 165, which is similar to the 156 launched in 2017.
In 2017 alone, global venture investments in blockchain-related companies almost topped $1 billion. This year, almost halfway through 2018, total venture investments have already exceeded $1.3 billion and the total crypto assets under management have exceeded $7.1 billion.
The majority of the new funds have been launched in the United States, with only one-third being officially registered with the SEC. China and Hong Kong take the second spot with 34 total funds.
Time will tell whether the influx of institutional capital will be enough to kickstart a turnaround in the fleeting crypto market, now down to a total market capitalization of only $217 billion.
Photo: Bitcongress.org / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.