Cryptocurrency funds are a new breed of investment funds that have emerged in the last few years to capitalize on the opportunity that digital currencies and tokens provide to financial investors.
Since the first bitcoin fund was launched in 2013, over 700 cryptocurrency funds have been launched, according to Crypto Fund Research, with over 100 new funds joining the fray in 2018 alone. Needless to say, this new market segment of the fund management industry is growing.
For this review, we evaluated several of these funds, looking at key performance indicators including their assets under management, number of employees, and tenure. The data used was primarily supplied by Crypto Fund List and Crypto Fund Research.
|Fund Name||Description||Assets Under Management||Launch Date||Number of Employees||Score|
|Polychain Capital||Polychain Capital, founded by Olaf Carlson-Wee, the first employe at Coinbase, seeks to provide its investors with "exceptional" returns through active management strategies. The fund invests in digital currencies and not companies.||$1.04 billion per Crypto Fund List||2016||10||4.10|
|Pantera Bitcoin Fund||This fund announced in July 2018 that it had generated a lifetime return of more than 10,000%, after fees and expenses, since opening in July 2013. (Source: Pantera Capital Medium Post). The fund's lifetime return surpassed 25,000% in December 2017, according to a New York Times Article.||$810 million per Crypto Fund List||2013||6||4.00|
|Accelerated Digital Ventures||Founded in 2016, Accelerated Ventures brings together institutional investors and early stage blockchain startups. It deploys institutional capital to enable startups to develop innovative new solutions in and for the decentralized economy. Investments have included Seedcamp and Techstars.||$180 million per Crypto Fund List||2016||20||4.00|
|Galaxy Digital Assets||Galaxy Digital Assets, based in New York City, is an investment firm focused on digital assets and blockchain technology. The firm harnesses a hybrid hedge fund/VC fund model to achieve its desired results. It was founded by Michael Novogratz, who previously worked for Fortress Investment Group.||$500 million per Crypto Fund List||2017||40||3.70|
|500 Startups||500 Startups is the most active early-stage venture capital fund in the world. The Silicon Valley-based fund has also invested in blockchain and cryptocurrency startups including BlockCypher and Hijro.||$55 million per Crypto Fund List||2014||50||3.50|
|3iQ||Founded in 2012 by Jean-Luc Landry and Fred Pye, 3iQ is a fully-regulated Canadian multi-asset cryptocurrency investment fund that provides accredited investors with exposure to digital assets such as bitcoin, Ether, and Litecoin through its 3iQ Global Cryptoasset Fund.||$10 million per Crypto Fund List||2012||20||3.40|
|Altana Digital Currency Fund||ADCF uses long and short strategies in an effort to outperform the markets. The firm was founded by Alistair Milne, an entrepreneur and investor, and Lee Robinson, an entrepreneur.||$450 million per Crypto Fund List||2014||7||3.30|
|AME Cloud Ventures||Founded in 2012, AME Cloud Ventures is an early-stage investment fund founded by Yahoo!'s Jerry Yang, which invests in early and later stage startups that are working in blockchain solutions. Investments so far have included ShoCard, BlockCypher, and Ripple Labs.||$55 million per Crypto Fund List||2012||8||3.20|
|Pantera Long Term ICO Fund||This fund has a preference for investing in "protocols where the token is integral to the functioning of service itself Ñ in protocols where tokens are the only exposure to the network," co-chief investment officer Joey Krug told TechCrunch. (https://techcrunch.com/2017/06/28/while-investment-firms-ponder-icos-this-team-is-barreling-ahead-with-a-100-million-ico-fund/?ncid=mobilenavtrend)||$810 million per Crypto Fund List||2017||6||3.10|
|Pantera ICO Fund LP||This fund, which was open to U.S. individuals and institutions when it was opened, initially aimed to raise $100 million (Source: CoinDesk). Investors' growing interest in tokens helped provoke the creation of this fund, which is co-managed by CEO Dan Morehead and co-chief investment officer Joey Krug. This fund specifically targets ICO presales. (Source: RCM Alternatives)||$810 million per Crypto Fund List||2017||6||3.10|
|BlockTower||BlockTower, which was founded in 2017 and is based in Stamford, CT., focuses on event-driven trading strategies and thematic investments.||$150 million per Crypto Fund List||2017||13||3.00|
|Alphabit Fund||This crypto hedge fund seeks to generate capital appreciation while reducing risk. On the website, the fund states that "our goal is to generate our clients more bitcoin than they started with. Not only that, we do it whilst generating lower volatility than that exhibited by bitcoin itself." The company is lead by CEO Liam Robertson, who has both a CFA (Chartered Financial Analyst) and the CAIA designation (Chartered Alternative Investment Analyst). The fund has upwards of $500 million in AUM, according to estimates provided by Crypto Fund Research.||$480 million per Crypto Fund Research||2017||9||3.00|
|Pantera Digital Asset Fund LP||This fund, launched in 2018, "seeks to allocate capital across the most fundamentally promising technologies that utilize digital assets," according to RCM Alternatives. Further, "it expects to allocate a portion of the fund's capital to newly established protocols through initial coin offerings ("ICOs") to gain early access to these technologies to improve potential return, provided that the fund's investment participation in ICOs of digital assets will not exceed 20% of the fund's net asset value."||$810 million per Crypto Fund List||2018||6||2.80|
|Crypto Currency Fund L.P.||Cryptocurrency Fund L.P. "capitalizes on and invests exclusively into blockchain-oriented startups and cryptocurrencies," according to its website. The fund uses Global Macro, Long/Short and Short Only trading strategies. The fund, which is registered with both the CFTC and NFA, accepts U.S.D. only.||$200 million per Crypto Fund List||2017||9||2.70|
|MetaStable Capital||MetaStable invests specifically in digital tokens, emphasizing that taking this approach can help eliminate other layers of risk. MetaStable has contrasted its approach with the strategy of investing directly into blockchain companies, noting that doing so relies on the efficacy of the management team and the company eventually holding some kind of liquidity event like an outright sale.||$60 million per Crypto Fund List||2014||4||2.60|
|Abstract Ventures||Founded in 2016, Abstract Ventures is a venture capital fund that invests in early stage startups in tech companies including blockchain startups. Investments have included Brave, Harbor, Ripple, OpenToken, and Polychain Capital.||$12 million per Crypto Fund List||2016||3||1.90|
|1confirmation||1confirmation is an investment fund founded by Nick Tomaino with backing from Peter Thiel, Marc Andreessen, and Mark Cuban that invests in blockchain startups and digital tokens. Investments have included BTC, ETH, BAT, MakerDAO and Augur.||$30 million per Crypto Fund List||2017||2||1.70|
|Amentum Investment Management||Founded in 2017, Amentum Investment Management is a digital currency hedge fund that focuses on "diversity, security, interoperability, and sustainability for blockchain-based protocols and applications,Ó according to its website. The fund has invested in bitcoin and Ether among other tokens, to date.||$10 million per Crypto Fund List||2017||4||1.60|
|Aenigma Capital||Founded this year, Aenigma Capital is an investment fund that focuses on ICOs and blockchain assets. Investments to date have included 0x, WanChain, Filecoin, Endor, EOS, Dash, and VeChain.||$10 million per Crypto Fund List||2018||10||1.60|
|AltaIR Capital||AltaIR Capital is an Israel-based venture capital fund that was founded in 2010 to focus on investments in the technology sector. The fund invests in startups covering FinTech, InsurTech, Blockchain, SaaS, MedTech, AI, Cyber, and Consumer Internet and has made several blockchain investments in recent years such as REGA Risk Sharing.||$20 million per Crypto Fund List||2010||6||3.20|
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