Price volatility notwithstanding, capital continues to flow to managers and assets devoted to the evolution of blockchain, CeFi, DeFi, metaverse and crypto assets and technologies.
The industry microstructure of exchanges, service providers, and regulatory focus also continues to develop. While historically, the investor base for these strategies and funds have been largely individuals and family offices, there is increasing interest from institutional investors who are now exploring building exposure via direct investments in crypto technologies and service providers, crypto ETFs, hedge funds, private equity and venture capital structures. The digital asset ecosystem has also seen the emergence of fund of funds structures to help diversify the high volatility risk in this asset class.
According to a recent 3rd Annual Global Crypto Hedge Fund Report 2021 from PWC and AIMA, there are more than 800 cryptocurrency or blockchain investment funds. The most common location for crypto hedge fund managers is the United States (43%), followed by the United Kingdom (19%) and Hong Kong (11%).
Given this backdrop, we have developed an infographic based on SEC-registered fund managers where we look at the attributes surrounding the digital assets investing ecosystem including a number of funds (pure-play + partial exposure), gross assets exposures via private funds, alignment of interests, strategy distribution and service providers. We hope that this provides a useful resource for crypto fund due diligence as well as serves as a basis to track new trends in institutional digital assets investing.
Note: all of the statistics provided here are sourced through our Form ADV analytics solution.