A possible three-way division of the crypto-industry is of developers, private investors and institutional lenders. While among the private investors, the mood is changing, partly in Frustration, is the BUIDL group, seemingly undeterred by the bear market. Theis only one of the current examples of this. Only the position of the institutional investors is not entirely clear.
According to the ICO-bubble rear bubble
The FinTech consultants of Autonomous NEXTin August, the loss of crypto-Fund up to 50 percent. This is in line with the Performance of the , an Index consisting of 17 crypto hedge Fund. Also reported in April by the closure of nine funds, including alpha Protocol. Probably for Performance reasons, the well-known Fund Polychain its planned IPO .
This Performance shows Parallels to ICOs in 2017 and beginning of 2018, where a lot of money flowed to questionable Blockchain projects, and again was deducted. Anof Dave Balter, a Partner at Flipside Crypto, suggests a similar cycle in crypto hedge Fund. According to Balter, the necessary regulatory Know-how, financial experience, or even a Fund strategy is missing from many crypto hedge Fund. Balters suspected that many funds start only from financial self-interest (e.g., Fund management fees). Balters concludes, therefore, a consolidation, as we see it currently in crypto-currencies.
Despite supposedly burst bubble new crypto-hedge Fund, arising
Nevertheless, investors are still interested in crypto hedge Fund. According tothis year about 600 hedge funds start. 20 percent (120) of a pure crypto-hedge Fund. In total, analysts predict 120 new crypto hedge funds for 2018. This is a 20-fold increase compared to 2015 (20 funds). To date this year were already established 90.
The Bursting of the alleged Fund-bladder, in contrast to the large interest in the Fund, begs the question, how to do it now.
If also contradictory, crypto-funds remain
By the Bursting of the ICO-bubble have the reviews against Blockchain & co. and increasingly, not least through Dr. Sebastian Wanke from the KfW (Kreditanstalt für Wiederaufbau), which is Bitcoin as a speculative object. Similarly, one could assume that with the collapse of the Fund bubble from one end of the Fund. For many Blockchain-maxima lists that would be the only correct way. So contradictory to Fund the Blockchain idea, which is not only institutional, but also private investors in the next “Facebook”, you can invest in.
ICOs started under this paradigm, but were slowed by legal regulations (e.g., KYC), juice and co. out. In addition, funds do not promise both for operators and investors to large profits, to deal with. Finally, see a lot of (ironically) ironically, the entry of the frowned-upon institutional lenders as one of the catalysts for the Mainstream dissemination of crypto-currencies. An example is Coinbasesof your funds. Within 30 minutes after the announcement of the crypto-market increased by more than eight percent. Even if you can’t prove causality, it is very likely.
As you look at it, crypto-(Hedge)Fund. It only begs the question of how they will look like.
Crypto-Fund: “Technology Money” instead of Smart Money
In hispredicts Dave Balter is a growing demand for Fund Management solutions. These are necessary because crypto currency management (e.g., storage of Private Keys) is technically complex. This technical complexity also implies a further development; the closer connection between “technology” and “Investment”. In the traditional Venture Capital speak of the Smart Money. In addition to the money investors in the case of taxes, contacts, Know-how and experience. In the crypto-Segment, one could speak of the “Technology Money”.
In addition to the money investors contribute technically as a “Miner”, Node-operator or Core Developer. A current example is Aurora EOS. Aurora EOS is a Block Producer for EOS,by the well-known crypto-Fund Multicoin Capital. With Aurora EOS Multicoin wants to stabilize the crypto industry. According to the multi-coins Managing Partner Kyle Samani crypto-investors are also for the stabilization of emerging markets. This stability may be due to Investments, Governance, and active participation will be achieved (from the English ).
The reasons why crypto should be involved in the investors technically to your Investments that are diverse. It is clear, however, that participation beyond the Financial, is beneficial for all.