2023 Institutional Crypto Hedge Fund and Venture Report: key numbers
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Summary of a VisionTrack report on crypto hedge funds and VCs: firm counts, AUM, market neutral strategy growth, asset concentration and venture fundraising in 2021 and 2022.
Key claims
1,528 crypto firms in Dec 2022 (667 hedge funds, 681 VCs, 180 platforms) with USD 92.6bn AUM
Top 20 hedge funds hold nearly 75% of hedge fund AUM
204 crypto VC funds raised USD 33.2bn in 2022 versus 140 funds and USD 19.4bn in 2021
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1/ VisionTrack recorded a total of 1,528 cryptocurrency-focused companies as of December 2022, broken down into 667 hedge funds, 681 venture firms, and 180 platforms. This represents a significant increase from the 650 firms in 2021 and 450 firms in 2020
2/ the aggregate value of assets held by these crypto-oriented firms amounted to $92.6 billion (AUM) by the end of December 2022. Hedge funds and venture funds, dedicated to cryptocurrency, accounted for 75% of this total, while platforms constituted the remaining 25%
3/ Market Neutral hedge fund strategies experienced a surge in popularity during 2021 & 2022, given the growing demand for non-directional means of realizing alpha in volatile market conditions. The quantity of these strategies witnessed an increase of 57% in 2021 and 23% in 2022
4/ by the end of the year, the top 20 hedge fund firms held nearly 75% of the total hedge fund AUM
5/ this pattern of asset concentration amongst major entities persisted. The 2021 rally and 2022 sell-off fostered consolidation, fuelling demand for institutional-grade firms and operations
6/ most of the funds have been established in the past one to three years. However, early institutional adopters still overshadow new hedge funds in terms of size
7/ around 45% of crypto hedge fund managers have a track record of 1-3 years, whereas less than 10% boast a track record exceeding 3 years
8/ focusing on crypto venture capital, there were 64 funds that secured new financing in the second half of 2022, equating to approximately $5.7 billion in total funds raised
9/ the cumulative for 2022 tallied at 204 crypto-focused venture funds with $33.2 billion in commitments. This was a considerable increase from the 140 venture funds that raised $19.4 billion in 2021
10/ as for venture funds, about 90% of all assets raised from 2017 to 2022 were accumulated in the past two years. The highest amount of fund value was raised in 2022, prior to the emergence of TerraUSD/$LUNA and #FTX
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bit.ly/cryptovcreport
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