Here at Token Metrics, we understand that our most valuable asset is you, our audience.
With your help, we have put together a guide to the Top 3 Crypto Funds of 2020, as voted upon by you.
So sit back, relax, and enjoy the Moon Awards.
What is a Crypto Fund?
Crypto funds are a relatively new form of asset management that has seen massive growth, considering the concept has only been around six years.
A crypto fund involves an investor relying on the fund’s founder and analysts to guide their money in the right direction. The fund serves as a way for a person to invest in a large group of underlying securities that are managed by teams of expert investors, endlessly analyzed, and occasionally rebalanced.
Crypto funds are very similar to a traditional stock market fund, but there are a few small differences. Besides being focused on the crypto and blockchain project market, crypto funds differ by being significantly smaller than traditional funds.
According to a 2019 report by PwC and Elmwood, there are only two crypto funds that have $1 billion or more in assets under management (AUM). Over 60% of existing crypto funds have AUM that is less than $10 million.
Crypto funds fall into two categories, crypto hedge funds, and crypto venture capital (VC) funds.
Crypto hedge funds operate more on a short-term basis, with holding periods lasting from minutes to a few months. These types of funds do more trading than investing.
Crypto VC funds, on the other hand, do more investing than trading. A crypto VC fund operates on a long-term basis, with typical holding periods of one year or longer.
Top 3 Crypto Funds of 2020
1) Coinbase Ventures:
“Coinbase Ventures has been early-stage investing in a lot of great blockchain companies. They have a large platform and network that immediately brings immense value to any blockchain startup.” – Ian Balina, Founder and CEO of Token Metrics
In a dominating performance with over 40% of the total vote seized, Coinbase Ventures comes in as the clear winner in the best crypto funds category. This result comes as no surprise as the fund operates as the investment arm of the popular Coinbase exchange featured in a previous Moon Awards category.
Founded in 2018 and located in San Francisco, CA, Coinbase Ventures operates as a venture capital fund with a long-term view in the crypto space.
Coinbase Ventures focuses on finding early-stage companies that can move the crypto space forward positively and substantially. Coinbase Ventures finds these early-stage companies by leveraging their experience research team with their extensive Coinbase alumni network.
Coinbase Ventures has provided financing to many promising early-stage companies, and you will probably know the names of many of them as they have evolved in the crypto space. Some companies receiving investments from Coinbase Ventures include Compound, Reserve, Token Daily, and Matic Network.
T-2) Digital Currency Group:
Ever since we started doing fundamental analysis on crypto projects in 2017, we have looked to see if reputable crypto funds support it. When we see DCG backs a project, we put it to the top of our research list. Digital Currency Group has a robust research arm and a proven track record of great investments. – Sam Monac, Head of Research, Token Metrics
For the first time in Moon Awards history, there is a dead-even tie in the results. Digital Currency Group and Galaxy Digital received the same number of votes for Top Crypto Fund of 2020. So, in alphabetical order, here are the 2nd place winners.
Founded in 2015 by Barry Silbert, Digital Currency Group (DCG) has established itself as a top venture capital fund in the crypto space. DCG also has three subsidiaries; Genesis, Grayscale, Coin Desk.
Each subsidiary has a unique function, and they all have a lot to offer in the crypto space. Genesis operates a full-service crypto broker while Grayscale is the world’s largest digital asset manager. Coin Desk finishes out the trifecta by being one of the leading independent sources of blockchain news, research, and data.
With a headquarters in New York City, Digital Currency Group has invested in over 150 companies across 30 different countries. Some of the companies that DCG has invested in include Etherscan, BitPay, Blockstack, Coinbase, and Kraken.
T-2) Galaxy Digital:
In the 90s, the stocks of broker-dealers like Merrill Lynch and Morgan Stanley used to function as leading indicators for financial markets. When those stocks would start to rally, they would frequently precede big rallies in both stocks and bonds. Today, Galaxy Digital performs that same function amazingly well. As Galaxy stock goes, crypto goes. Also, Novogratz himself puts out incredibly helpful trading ideas about what he is trading via Twitter. If you listen carefully, you can figure out where the market is going based on what he says. – William Noble, Chief Investment Officer, Token Metrics
As for our other 2nd place winner, Galaxy Digital has become quite a robust fund in the crypto space. Galaxy Digital was founded in 2018 by Michael Novogratz, who had previously worked at Fortress Investment Group. Novogratz currently serves as Galaxy Digital’s CEO.
With a headquarters in New York City, Galaxy Digital has carved out an essential place in the crypto world. Galaxy Digital functions as a combination of a hedge fund and a venture capital fund that allows investors to get the best of both the hedge fund and VC worlds.
The balanced approach of investing in digital currencies, ICOs, and early-stage companies resulted in Galaxy Digital launching with over $500 million in assets and a plan to raise at least $200 million more.
Things have not always worked out well for Galaxy Digital, though, as the fund registered a $273 million loss in 2018 and a $68 million loss in Q3 of 2019. Currently, Galaxy Digital has $350 million in assets under management.
The Up-and-Comer: Token Metrics Indices:
We’re excited to be launching one of our most requested features, crypto rating indices. These are model portfolios built using our machine learning technology. This simplifies and brings quality investing and trading to all our customers.
– Ian Balina, Founder and CEO of Token Metrics
After a lengthy development, the team at Token Metrics is proud to announce one of the most heavily requested features, crypto rating indices. While not quite a crypto fund, the crypto indices are the next best thing.
The Token Metrics indices allow our customers to harness our machine learning technology’s power in a much easier and simplified way. The indices take the analysis provided by our core platform and display it in a more actionable way.
There is an index for a variety of investment strategies and risk tolerances with all indices performing strongly in the past three months of internal testing. Whether a short-term trader or a long-term HODLer, there is an index for you that provides simple and clear investment guidance.
Each index provides an easy to follow investment guide that clearly shows all rebalancing transactions and allows for concise performance tracking. With the Token Metrics indices, the information to build your winning crypto portfolio is just one click away.
The indices are currently available for all Token Metrics customers. Everyone here at Token Metrics is excited to see Phase 2 of the platform take our loyal community to the moon and beyond.
Check out the Token Metrics indices at this link
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