Cryptocurrency Fund Assets Are at All-Time High

By Prashant Jha

A recent report by Crypto Fund Research suggests that the crypto-fund asset is at an all-time high despite bearish market trends. A total of 239 funds were launched in 2018 which is the highest up until now.

However, the research which took the 13-month time period into consideration shows that despite a significant spike in crypto-related fund offerings the closure rate has gone up significantly as well.

The new report by Crypto Fund Research which is into the listing of various firms offering crypto funding opportunities suggests that a record 239 firms offered crypto funding, but the prices fell by nearly 80% from their early year highs. In the latter part of 2018, the number of crypto funded projects shutting down also touched new lows with 40 firms calling it quits.

Comparing it to 2017, when crypto probably had the best time on the trade market, a total of 224 funds were released by investors to new and upcoming crypto offering services. The number of closures in 2017 were almost negligible and rightly so since the prices of cryptocurrencies sky-rocketed towards the end of 2017.

The Largest Crypto Funds Gainers

Out of the total 239 fund offerings, a total of 39 firms have received offerings in access of $100 million  The top biggest gainers of the fundraising are,

1. Arrington XRP Capital
2. BlockTower Capital
3. Brian Kelly Capital Management
4. Digital Currency Group
5. Funabashi Capital
6. Galaxy Digital Assets Fund
7. Metastable Capital
8. Pantera Capital
9. Polychain Capital
10. Protocol Capita

Michael Novogratz, the crypto bull and an investor himself described the 2018 year as most challenging for investors. He has cited the bearish market throughout 2018 as the biggest challenge for crypto investors and calling it a grind. However, he also made an appeal to other investors to stay afloat as being a crypto bull he believes that his investments would pay out good dividends.

Most of the Crypto Fund Raising Was Concentrated During Q1 2018

Josh Gnaizda, CEO of Crypto Fund Research, revealed that the majority of the 239 fundraisers were concentrated during the first quarter of 2018. The rest 3 quarters saw minimal fundraisers due to continuous bear attacks on the market.

The reason for such trends are obvious, the first quarter fundraisers were riding high on the December crypto price blockbuster. The sky-rise in crypto prices made many investors quote even higher prices in the coming years, some going on to claim that Bitcoin might breach $60K mark in 2018.

However, after the prices failed to match the rise of December high after the first quarter, many became cautious and realized that Bitcoin might not breach any new price records. By December 2018, only 10 fundraisers were completed.

Despite the scarcity towards the end of 2018, the Crypto Fund Research suggests that the total number of existing and new funds reached a total of $10 billion valuations, a rise of $3.5 billion in 2018.