[2018-07-27] Major Milestone: There Are Now More than 300 Cryptocurrency Funds

[moriskarlov]

The recent bitcoin price decline and subsequent bear market put a severe dent in profit projections for hedge funds that invest in cryptoassets, but it has not prevented the sheer number of these cryptocurrency funds — and the size of their assets under management (AUM) — from swelling to record levels.

Number of Cryptocurrency Funds Surpasses Another Milestone

According to new research from cryptocurrency analytics firm Autonomous Next, the number of cryptocurrency funds has exploded to more than 300 in 2018, with 312 up-and-running when the report was completed earlier this month.

That’s a 24 percent increase from the beginning of the year when 251 funds were operational. It’s also a 457 percent surge from the 56 funds that were active in 2016.

The majority of new funds opened in the second quarter. As CCN reported, just 20 new firms entered the space during the first quarter, and nine others shut their doors due to market headwinds that made it difficult for even large funds to attract new investors.

See more - https://www.ccn.com/major-milestone-there-are-now-more-than-300-cryptocurrency-funds/

[1Referee]

These funds are doomed to fail one by one because of how they thrive on the short term market. Most people pumping money in these funds are too stupid to invest themselves, and are extremely short term minded. If one thing has become clear during a bear market, these are the first people to actually get wiped out, and these are the exact same people investing in these funds. It's not a viable way of conducting business.

Price down one month you can explain them that it is a normal correction.

Price down another month you can probably still explain them that it is a normal correction.

But what if the third, fourth, fifth month are also losing months? People won't swallow that shit. They'll lose confidence in the "expert" and withdraw what's left of their funds.

[Slow death]

these data are very interesting, I noticed this:

just 20 new firms entered the space during the first quarter, and nine others shut their doors due to market headwinds that made it difficult for even large funds to attract new investors.

this " nine others shut their doors " reminded me that these funds are managed by people who consider themselves bitcoin experts, then these experts who both make very high price prediction. but the some expert letting funds go bankrupt? Where is the expert factor?

but it has not prevented the sheer number of these cryptocurrency funds — and the size of their assets under management (AUM) — from swelling to record levels.

Of course this would not prevent anything because they would buy even cheaper