Recent research that has just been released has found compelling evidence that suggests that Cryptocurrency finance-based assets have a high probability of doubling twice their total value by the end of this year. An even more interesting finding is that approximately one hundred of these startup ventures are predominantly niched in Cryptocurrencies or crypto-related work.
How The Cryptocurrency-Based Funds Compare
Hedge funds have been popular for many, many years and in 2017 close to 700 Cryptocurrency hedge funds were established. These 700 hedge funds compose a total of 14% of all hedge funds globally to date; however, the net worth of these Cryptocurrency-financed funds only constitute a total of 1% of the $3.2 trillion value of hedge funds globally.
The report found that of all available types of hedge funds currently available on the market, Cryptocurrency financed funds have the most dynamic growth at this time. To add to the attractiveness of Cryptocurrency hedge funds, these funds were the also the stars of the class for 2017, having the greatest earning profiles for the year. Hedge funds might be the most notable of the online assets that are on offer, however, there is another dark horse that is becoming increasingly omnipotent, is none other than venture capital-based Cryptocurrency funds.
Many companies that already specialize in financial and technology products have seen this trend and are leveraging the changing of the tides to their advantage. In addition, many Blockchain organizations that have begun to stabilize have begun to join hands with established investment firms and private investment groups.
There are currently 274 Cryptocurrency-based investment offerings of these there are 174 hedge funds and a total of 90 Cryptocurrency private equity initiatives. There are also a small number of Exchange Traded Funds or ETFs that are Cryptocurrency based at the moment, however, this number is expected to rise as well.
The vast majority of crypto-based investments have been found to be managing investment values that are worth less than $10 million at the moment, however, there are a select few funds that are controlling interests that are greater than $100 million, examples include Metastable Capital, The Logo’s Fund, and Polychain Capital.
Reasons The Researchers Are Looking Up
Researchers have stated that the reasons they anticipate the hedge funds worth to expand to twice their total size, is that many more people will have a greater understanding and therefore, willingness to associate their investment capital with the assets of the fund. An additional reason that the crypto funds will likely increase is that there will be a higher growth of capital directed to the fund.
Yet it must be known that if all the crypto funds net worth was added together it is still worth less than 10% of what a typical hedge fund is worth. However, judging by the data it won’t look that way for much longer. This is in part due to the continuous stream of price increases that Bitcoin and other Cryptocurrencies experienced in 2017.
A most recent success story is three Harvard students who have managed to start a $1 million Cryptocurrency hedge fund, Plympton Capital, through a $700 000 injection from family and friends.