New crypto funds are continuing to open despite a falling market and apprehension over ETF decisions, according to the latest analysis from Crypto Fund Research.
With things seeming to go well for crypto funds, collectively amassing $7.1 billion, they still lag behind traditional hedge funds, with most of the institutional investment managers playing a wait and see scenario. Cryptocurrencies’ next big hurdle, now that digital currencies are very much out there in the financial sector, is to start encouraging institutional investment on a larger scale.
It is thought that 2018 will see more crypto hedge funds arrive on the scene, which is on target to reach 165, nine more than in 2017. Statistics show that until July 31 of this year, there were 96 new crypto hedge funds and venture capital funds with more than half of those existing today being launched in the past 18 months.
There are currently 466 crypto funds across the globe with San Francisco, New York, Singapore and London topping the list for 2018 launches. In addition, Austin, Dallas, Hong Kong, Philadelphia, San Diego, Tokyo, and Zug are not far behind in terms of multiple launches of crypto hedge funds and capital ventures since January this year.
In terms of ICOs, launches have also accelerated this year to date, also seemingly undeterred by a bear market. However, 50 percent of all projects in 2018 have failed to raise more than £100,000. This low figure was put down to investors concerns about scams.
Service tokens accounted for 42 percent of new ICOs, but utility tokens attracted the most funding at $22 million per project, followed by crypto tokens at an average of $7 million.
Another hurdle for new ICOs remains that problem of getting projects listed on exchanges, which has become an increasingly lengthy process. The number of projects that managed to get listed in the shortest possible time fell by 22 percent this year, due in part to tougher exchange requirements and new regulatory demands.
In overall terms, 2018 has been 10 times better than the previous year for ICOs, according to a market status report published by ETF on August 8, with more money being raised and more ICOs being launched in the second quarter of the year.
A notable fact coming out of the report is that small nations are winning in terms of making the largest gains, with Malta, Gibraltar, and Singapore coming out on top. Malta raised an average of £119 million, almost twice the funds raised by second on the list Gibraltar. Other statistics show that although it is clearly European nations that are making the largest gains in terms of overall fundraising, North America is still the crypto giant at $4.98 billion with 116 projects, a huge 65 percent of all the funding raised. Europe came in second at $1.12 billion, with Asia coming in third with $751 million.
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