Analysis News

Exclusive: Crypto Funds Based in Singapore. Part 1

There is an explosive growth of cryptofunds in 2017-2018. The fact of appearance of the structures and expansion of assets under management (AUM) testifies to the growing of crypto industry.

Why Funds

By pooling larger amounts of investment monies, professional fund managers are better equipped to obtain outsize returns by favoring some stocks over others. It seems that hedge fund wisdom in stocks has transferred across to crypto hedge funds as well. In 2017, a spectacular year for cryptocurrencies, crypto funds returned 1,708 percent on their investments.

The market for ICOs has been challenging, but good projects have continued to do well and with venture capital pouring in a combined total of US$1.3 billion into blockchain and cryptocurrency projects last year, it may still yet be early days. As the blockchain and cryptocurrency spaces start to grow, venture capitalists can be expected to spur growth the best way they know how — pour even more money into it. According to a Silicon Valley-based venture capitalist, “It’s still early days. We don’t know what will be built yet. Right now the idea is – to stay engaged, be player in the space”. The total estimated amount managed by crypto funds is US$5.7 billion with over half based in the United States. By comparison, the global value of assets under management in 2016 was US$84.9 trillion. Crypto funds go by many names – cryptocurrency funds, blockchain funds, or digital asset funds. The number of crypto funds is on the rise. With rising prices and rising public awareness, there were more than 100 crypto funds launched in 2017. For comparison, there were about 700 total hedge funds launches in this same time. Crypto hedge funds are the fastest growing segment of the hedge fund industry. It is expected to see nearly 150 crypto fund launches in 2018, based on the pace throughout the first part of the year. Total cryptocurrency fund assets could easily double over the course of the year. There are currently more than 400 cryptocurrency/blockchain investment funds. The majority are set up as hedge funds, while a large number are venture capital funds. There are also a handful of crypto ETFs and crypto private equity funds.

Ex Oriente Lux / Light from the East

Hedge funds are the most common type of digital asset fund, but venture capital crypto funds are launching quickly, and existing tech/FinTech VC firms are expanding investments into blockchain startups and launching their own blockchain funds. As some blockchain companies mature, private equity funds are beginning to get involved. Hybrid funds – those funds investing in cryptocurrencies as well as initial coin offerings, are listed above as hedge funds although they take on some characteristics of venture funds.

Over half of all cryptocurrency investment funds are based in the United States. The United Kingdom, China/Hong Kong, Singapore, Switzerland, Canada, and Germany all have a significant numbers of funds. New crypto funds are also beginning to pop up in Eastern Europe and Russia, as well in offshore jurisdictions. The fact the funds are rising in the States is not surprising – here financial engineering has developed well. Surprising is that a large number of funds are appeared in Southeast Asia where they work successfully. And the leader here is Singapore. The sign of success is a large number of blockchain and DEX ICOs with x-ROI. Below is the list of funds based in Singapore.

Fund Name Launch year Fund Type
Astronaut Capital 2017 Crypto Hedge Fund
Finshi Capital 2017 Crypto VC
Helvetic Investments 2017 Crypto Hedge Fund
Kryptos Associates 2017 Crypto Hedge Fund
LinkVC 2017 Crypto VC
OC Horizon FinTech 2017 Crypto Hedge Fund
Signum Capital 2017 Crypto VC
Black Edge Capital 2018 Crypto VC
Block X Ventures 2018 Crypto VC
BullCoin Gold 2018 Crypto Hedge Fund
DYOR Capital 2018 Crypto VC
NEO Global Capital 2018 Crypto VC

Details will be published soon in Part 2 of that Overview. Stay tuned.

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