Cryptocurrency funds are a new breed of investment funds that have emerged in the last few years to capitalize on the opportunity that digital currencies and tokens provide to financial investors.
Since the first bitcoin fund was launched in 2013, over 800 cryptocurrency funds have been launched, according to Crypto Fund Research. Needless to say, this new market segment of the fund management industry is growing.
For this review, we evaluated several of these funds, looking at key performance indicators including their assets under management, number of employees, and tenure. The data used was primarily supplied by Crypto Fund List and Crypto Fund Research.
|Fund Name||Description||Assets Under Management||Launch Date||Number of Employees||Score|
|500 Startups||500 Startups is the most active early-stage venture capital fund in the world. The Silicon Valley-based fund has also invested in blockchain and cryptocurrency startups including BlockCypher and Hijro. 500 Startups boasts an investment portfolio of over 2,400 companies spanning over 75+ countries.||$1.105 billion||2010||1350||4.70|
|Grayscale||Founded in 2013, Grayscale’s crypto fund has become the biggest in the world, posting record numbers in Q3 of 2020.||$10 billion||2013||23||4.10|
|Pantera Bitcoin Fund||This fund announced in July 2018 that it had generated a lifetime return of more than 10,000%, after fees and expenses, since opening in July 2013. (Source: Pantera Capital Medium Post). The fund’s lifetime return surpassed 25,000% in December 2017, according to a New York Times Article.||$810 million||2013||26||4.00|
|CoinShares||Launched in 2014, CoinShares became Europes first and largest bitcoin investment fund. Having offered the world’s first bitcoin-based securities in 2015, the firm has gone on to command investment firms outside of crypto.||$1 billion+||2014||36||3.80|
|Polychain Capital||Polychain Capital, founded by Olaf Carlson-Wee, the first employe at Coinbase, seeks to provide its investors with “exceptional” returns through active management strategies. The fund invests in digital currencies and not companies.||$744.2 million||2016||36||3.40|
|Galaxy Digital Capital Management||The New York-based investment firm is focused on digital assets and blockchain technology. The firm harnesses a hybrid hedge fund/VC fund model to achieve its desired results. It was founded by Michael Novogratz, who previously worked for Fortress Investment Group.||$446.30||2018||107||3.30|
|AltaIR Capital||AltaIR Capital is an Israel-based venture capital fund that was founded in 2010 to focus on investments in the technology sector. The fund invests in startups covering FinTech, InsurTech, Blockchain, SaaS, MedTech, AI, Cyber, and Consumer Internet and has made several blockchain investments in recent years such as REGA Risk Sharing.||$400 million||2010||24||3.30|
|3iQ Corp The Bitcoin Fund||Founded in 2012 by Jean-Luc Landry and Fred Pye, 3iQ is a fully-regulated Canadian multi-asset cryptocurrency investment fund that provides accredited investors with exposure to digital assets such as bitcoin, Ether, and Litecoin through its 3iQ Global Cryptoasset Fund.||$203 million||2020||17||3.00|
|Altana Digital Currency Fund||ADCF uses long and short strategies in an effort to outperform the markets. The firm was founded by Alistair Milne, an entrepreneur and investor, and Lee Robinson, an entrepreneur.||$23 million||2010||26||2.20|
|BlockTower||BlockTower, which was founded in 2017 and is based in Stamford, CT., focuses on event-driven trading strategies and thematic investments.||$100 million||2017||12||2.10|
|Alphabit Fund||This crypto hedge fund seeks to generate capital appreciation while reducing risk. On the website, the fund states that “our goal is to generate our clients more bitcoin than they started with. Not only that, we do it whilst generating lower volatility than that exhibited by bitcoin itself.” The company is lead by CEO Liam Robertson, who has both a CFA (Chartered Financial Analyst) and the CAIA designation (Chartered Alternative Investment Analyst).||$25 million||2017||22||1.90|
|1confirmation||1confirmation is an investment fund founded by Nick Tomaino with backing from Peter Thiel, Marc Andreessen, and Mark Cuban that invests in blockchain startups and digital tokens. Investments have included BTC, ETH, BAT, MakerDAO and Augur.||$50-100 million||2017||2||1.70|
|Amentum Investment Management||Founded in 2017, Amentum Investment Management is a digital currency hedge fund that focuses on “diversity, security, interoperability, and sustainability for blockchain-based protocols and applications,” according to its website. The fund has invested in bitcoin and Ether among other tokens, to date.||$10-20 million||2017||23||1.60|
Sources: Press releases, Cryptofundintelligence.com, Aum13f.com, Crypto Fund Research, Crypto Fund List
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