Cumulative AUM of crypto funds worldwide 2018-2022

Assets under management (AUM) of crypto funds have continued to grow worldwide since the beginning of 2018. Crypto funds' cumulative AUM surpassed 20 billion U.S. dollars for the first time in 2020 and reached a peak of 69.7 billion U.S. dollars at the end of the fourth quarter of 2021. Despite some of the digital investment challenges of hedge fund managers, such as lack of custody and regulation, by the end of 2021, the average AUM value of crypto hedge funds rested at approximately 58.5 million U.S. dollars.

What is a crypto fund?

Crypto funds refer to a portfolio containing a range of digital assets, these portfolios are typically managed by asset managers and made accessible to investors. The number of crypto funds is primarily distributed between venture capital crypto funds that implemented methods such as pre-ICO investing and crypto hedge funds that bought and sold digital crypto assets utilizing trading strategies determined by the asset manager.

Investment in crypto funds

Online news and traditional media are among the primary sources that led to many investors learning and investing in crypto funds. Investors buy into these funds to receive a portion of any value created from trading activities. Venture ICO and long-only strategies provided crypto fund returns for investors in the third quarter of 2021.