By
Steve Muchoki
April 19th, 2024
The report attributed a large part of growth to the launch of VC and crypto hedge funds between 2017 and 2018 which subsequently saw the total AUM of crypto funds nearly double year-over-year from 2019 to 2020.
An annual GFM report published by Coinbase has stated that the cryptocurrency fund market is still a wide-open pool of opportunities and institutional investors should treat it as such. The report by Coinbase also hinted that an SEC-approved Exchange Traded Fund (ETF) could happen in the crypto market within a year.
Studies from the report revealed that the crypto fund market has enjoyed steady growth throughout the years and is still on course to maintain that upward trajectory. Whiles citing data from Crypto Fund Research (CFR), the Global Fund Management report published by Coinbase revealed the total number of crypto funds to have gained an unprecedented 800% over the last five years, a number which could see a significant rise within the next few years.
The report published by Coinbase attributed a large part of growth to the launch of VC and crypto hedge funds between 2017 and 2018 which subsequently saw the total AUM of crypto funds nearly double year-over-year from 2019-20, with over $36 billion in total assets at the end of last 2020.
The Q1 2021 Crypto Fund Report prepared by CFR showed that 426 out of the 835 cryptocurrency funds that were locked in the global market as of Q1 2021 were VC funds whiles 386 were hedge funds.
The Bitcoin ETF section of the market however hasn’t seen enough buzz as many crypto experts had predicted. ETFs constitute just a smaller portion of the crypto fund market and whiles momentum is still not up to par with other sections of the market. According to Coinbase, there appears to be no shortage of demand for the Securities and Exchange Commission to finally approve a crypto ETF for the United States.
The future of Bitcoin EFTs has been a hot take in the crypto market for some time now. Whiles many investors are not sure which direction EFTs are headed, others believe that once they get past the regulation hurdle, the market could be in for a major boom.
Rumi Morales, a partner with Outlier Ventures, speaking to reporters on the future of Bitcoin ETFs stated that it will be a unique way for many crypto investors to be able to access and enjoy the economic opportunity of Bitcoin whiles escaping the numerous technical issues right now, which includes the registration of wallets or storage of coins.
“It can make investing in Bitcoin a lot easier for more traditional investors. And I think that’s why many people are excited about possibly seeing this out,” she stated. “ETF is a type of security that can be shaped to track anything, right, from the price of an individual commodity, or in this case, Bitcoin. They’d be theoretically, be able to purchase or sell on the stock exchange,” she added.