If you are up for some extra learning effort, you can take charge of your crypto investments instead of leaving it in the hands of fund managers. Keep in mind some basic requirements and starting principles:
Think long-term: if you put money in something blindly without adequate research/preparation, it is gambling. Avoid chasing after the next meme-coin in search of 100x returns; plan on buying a handful of high-quality digital assets, then holding on to them for 5+ years.
Pay off your debts first: before you start investing in high-risk avenues like crypto, clear all your existing short-term loans and debts, especially credit card debts.
Active since 2014, it has achieved phenomenal success with a combination of long and short strategies, deploying up to 50% of its assets trading cryptos.$92 million2014262.80GrayscaleFounded in 2013, Grayscale has quickly evolved into the world’s largest digital currency asset manager. In 2021, they achieved 73.4% coverage of the digital currency market, with a wide range of investment products including single-asset trusts and diversified crypto DeFi funds.$55 billion2013464.60Pantera Bitcoin FundAs the first US-based institutional asset manager to focus exclusively on a blockchain, Pantera Capital has been a pioneer in crypto funds since 2013. With over 80 venture investments and 70 early-stage token investments, the fund has expanded significantly in size in recent years.$6 billion2013534.20CoinSharesLaunched in 2014, Coinshares is Europe’s first and largest bitcoin investment fund.
Digital Currency Group Inc., a conglomerate that owns several of the biggest players in the cryptocurrency ecosystem and has stakes in many others, is valued at $10 billion following a secondary sale announced this morning.
In the secondary sale, a group of investors led by SoftBank Group Corp. bought shares from the company’s existing backers. CapitalG, the growth fund of Google LLC parent company Alphabet Inc., participated as well along with GIC and Ribbit Capital. The deal marks CapitalG’s first ever investment in the cryptocurrency segment.
Since its 2015 launch, Digital Currency Group has established itself as one of the biggest players in the cryptocurrency ecosystem with revenuesreportedlyon track to surpass $1 billion this year.
You can invest in ETFs just as you would in stocks – buy, sell, hold, and trade them as you please. In a crypto ETF, the fund tracks the price of a cryptocurrency (or multiple currencies). Thus, it gives individual investors easier access to cryptos without learning how to open and use bitcoin wallets, etc.
(You can learn more about crypto ETFs on our Bitcoin ETFs page.)
Bitcoin and Crypto Stocks: These days, there are numerous startups active in the blockchain industry. We also have plenty of publicly traded firms that have strong connections to the cryptocurrency markets. The stock of such companies that benefit from the rise of blockchain and cryptos are called “block stocks.” For investors looking at an indirect exposure to cryptos, block stocks are an interesting choice.
Crypto funds explained: A cryptocurrency fund is a new investment vehicle similar to mutual funds/ETFs, containing a portfolio of digital tokens and cryptos instead of stocks, indices, or commodities.
In this piece, we’ll highlight the best crypto funds for 2022, with focused recommendations for investors, large and small.
According to Crypto Fund Research, since the first bitcoin fund was launched in 2013, over 800 cryptocurrency funds have been established. And this new market segment of the fund management industry is growing at a frenetic pace.
According to PWC research, total assets under management (AUM) of cryptocurrency funds nearly doubled between 2020 and 2021, from $2 billion to $3.8 billion.
With over $50 billion AUM, they are the largest and most respected digital asset investment firm currently operating globally.
Both these firms only accept investments from accredited investors – high net-worth individuals ($1 million or more, excluding primary residence), or $5 million in assets/all beneficial owners as accredited investors.
Best Crypto Fund for Smaller Investors
There are plenty of other options aimed at individual investors from more modest backgrounds. If you want to invest smaller amounts in cryptos and digital tokens, the following are our top picks:
Bitcoin and Crypto ETFs: An exchange-traded fund (ETF) is an investment fund that tracks the value of a particular underlying asset. Usually, the asset is a commodity like gold/oil, a basket selection of stocks, or a major index.
One of the largest is called Genesis and provides financial services to institutional investors looking to trade in cryptocurrency. Another subsidiary, Foundry, provides financing for companies in the bitcoin mining ecosystem as well as other offerings such as market intelligence.
While driving the revenue growth of its subsidiaries, Digital Currency Group invested in more than 200 blockchain companies.
Digital Currency Group currently isn’t actively planning for an initial public offering, according toCNBC, but it hasn’t ruled out going public eventually. The companytoldthe Wall Street Journal that it has a sufficient amount of capital to buy shares from investors and employees who wish to sell.
The median fund returns have also increased – from +30% in 2019 to +128% in 2020.
We evaluated several of these top-performing funds for this review, looking at key performance indicators, including their AUMs, number of employees, and tenure. The data used was primarily supplied by Crypto Fund List and Crypto Fund Research.
The Best Crypto Funds, Based on Performance
Fund NameDescriptionAssets Under ManagementLaunch DateNumber of EmployeesScore500 StartupsOriginally started as 500 Startups, the Silicon Valley-based early-stage VC capital firm has a portfolio of over 2500 firms across 75+ countries.