Frequently Asked Questions about Crypto Funds
What are crypto funds?
In essence, crypto funds are investment funds that invest in cryptocurrencies like Bitcoin, or in companies operating in the blockchain or cryptocurrency sphere. Crypto funds can take many forms including hedge funds, venture capital funds, private equity, index funds, and ETFs.
What types of crypto funds are there?
The most common type of crypto fund are venture capital funds, followed closely by crypto hedge funds. There are also a number of private equity funds invested in blockchain/crypto, a few large crypto index funds, and expectations for various crypto ETFs.
Is there a good list of crypto funds?
There are now more than 840 crypto funds including crypto hedge funds and venture capital funds. The largest and most comprehensive list of crypto funds is in the Crypto Fund List – an Excel-based list of all currently operational crypto funds. Because the list is in Excel format it is very user-friendly and can easily be sorted by funds’ location, AUM, strategy and more.
Are cryptocurrency funds safe?
While many crypto funds boast impressive returns, investing in crypto funds is risky. The volatility of crypto fund returns is typically much higher than that of stock market ETFs or mutual funds. In addition, many crypto funds have gone out of business over the last few years and a few have been involved in fraud. That said, there are many well run crypto funds with impressive returns. One should conduct extensive due diligence and consult a professional before investing in crypto funds (just as you would do before investing in any private fund).
What are the best crypto funds?
Some of the top returning crypto funds over the last 12 months are Lavaliere Capital Management, Digital Asset Capital Management, and SwissRex Ag. Because of the inherent volatility in crypto, and a constant shift between top performing strategies, the top performing crypto funds vary from quarter to quarter and year to year. You can view the best performing crypto funds in our Crypto Fund Performance Awards.
How have crypto funds performed?
From 2017 through the second quarter of 2021, crypto funds returned over 1700%. This is a greater return than Bitcoin, and significantly higher than the returns of most asset classes such as stocks, bonds, and traditional commodities. However, cryptocurrencies, and crypto funds in particular, tend to have much more volatile returns than most other asset classes.
What is the CFR Crypto Fund Index?
The CFR Crypto Fund Index is an equal-weighted, non-investable, index of more than 80 crypto funds. The index dates back to 2016 and is the industry-standard benchmark for crypto fund performance. Since inception, the CFR Crypto Fund Index has outperformed Bitcoin, largely due to outperformance during bearsish markets for Bitcoin and other cryptocurrencies.
Where can I see crypto fund performance?
Crypto Fund Research maintains the largest database of crypto fund performance. The database includes more than 150 funds reporting monthly performance. It also includes detailed fund vehicle info such as min. investments, domicile, third party providers etc. as well as performance metrics like Sharpe and Sortino Ratios. Because of the nature of the data, the Crypto Fund Performance Database is only available to accredited investors and qualified clients.
How can I get my crypto startup funded?
Securing funding for a crypto or blockchain startup can be challenging. Most traditional angel and venture investors have shyed away from the space. However, getting funded is by no means impossible. In fact, in just the second quarter of 2021, blockchain startups raised a record $4.4 billion. The challenge for many founders is identifying the best sources of funding. The Venture Funding Finder tool was created specifically to help blockchain and crypto startups identify potential investors in their companies.
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