Despite Falling Prices and Regulatory Hurdles, Bay Area Hedge Funds and Venture Capital Launch Cryptocurrency Investment Funds at Record Pace.
Rohnert Park, CA, April 26, 2018 – Prices for cryptocurrencies like Bitcoin and Ethereum have plummeted 50% from their December 2017 highs and the SEC has announced its intent to investigate over 100 crypto hedge funds. Yet these hurdles haven’t slowed the explosive growth of new crypto investment funds launching across the US, according to Crypto Fund Research.
So far in 2018, there have been 34 launches of crypto funds worldwide. Seven of these 2018 launches are from funds based in California.
The Bay Area is the epicenter of the rapid growth in cryptocurrency funds. Over a quarter of the world’s 276 crypto funds are based in California. The Bay Area alone is home to 58 crypto hedge funds and venture capital firms (21% of the global total). Most of these are in existing hot spots for hedge funds and venture capital, including San Francisco, Menlo Park, and Palo Alto.
San Francisco has more crypto funds than any other city. Menlo Park and Palo Alto are both among the top 8 cities worldwide for crypto funds.
Josh Gnaizda, founder of Crypto Fund Research, said, “In a sense, it’s not a surprise that California is leading the huge increase in crypto investment funds. Silicon Valley is the center of venture capital and San Francisco is one of the top 5 locations for hedge funds. Combine the existing financial infrastructure and technology prowess of the Bay Area, and it’s natural that the region has developed into the leader in the crypto fund boom.”
Top Cities for Crypto Funds (Worldwide)
- San Francisco: 32
- New York: 26
- London: 19
- Singapore 13
- Menlo Park: 8
- Palo Alto: 8
- Chicago: 8
- Hong Kong: 6
More info on the current crypto fund industry can be found here: https://cryptofundresearch.com/cryptocurrency-funds-overview-infographic/
About Crypto Fund Research
Crypto Fund Research provides proprietary research on the cryptocurrency investment industry and is part of The Blue Heron Group, providing alternative investment research and consulting since 2008.
Josh Gnaizda, [email protected]