Who Is Growing Inside the Global Cryptocurrency Fund Race Between Major Countries?
Cryptocurrency funds based in Asia have had better results than those operated by US firms. This is according to Jason Choi, a researcher at the financial service firm Spartan Capital. He explained that Asian crypto funds performed as much as 20 times better than US counterparts.
Asian Or US Crypto Funds?
As Mr. Choi explained, Asian crypto funds have outperformed those in the United States. Although there was very low media coverage on the matter, these funds had a better performance in the first quarter of 2019. These funds were also rising on better fundamentals related to governance, token design and more.
On Twitter, Choi wrote that there are several crypto funds in Asia that do not care about Medium posts, Twitter threads, tokeneomics or more. He did not provide any name or statistic about this. He has provided a list of funds that played an important role in bridging the gap between mainstream finance and virtual currencies. It is usually difficult to find these kinds of funds that aim at connecting two different financial and economic sectors.
One of the digital assets that have received funding from one of these funds is Aergo. Aergo has received money from different companies, including Samsung, POSCO and Block Crafters Capital. According to data provided by CoinMarketCap, Aergo was worth $2.20 million just in December 2018. Now, it has a market capitalization of $14.50 million, showing that the digital asset had a very interesting growth in the first quarter of this year.
Another virtual currency fund is Dragonfly Capital Partners that had $100 million worth of assets under management at launch. The firm has already been investing $20 million to invest in a wide range of crypto projects. One of the projects that this fund has invested in is the stablecoin Basis, which received support from other companies such as Binance or Oasis Labs.
Jolyon Ellwood Russell, a Hong Kong-based finance partner at Simmons & Simmons, explained that they have seen a lot of interest from money managers about setting up new crypto funds.
“The asset managers’ appetite for setting up crypto funds has been robust in Hong Kong over the past four or five months.”
He has also mentioned that these virtual currency hedge funds in Asia have been growing and searching for different strategies other than Bitcoin (BTC).
Asia is a very important region for virtual currencies and blockchain technologies. Societies deeply involved in technology have been embracing digital assets and blockchain technology. Nonetheless, some countries have already implemented very hard regulations in space.
China and South Korea have banned Initial Coin Offerings (ICOs) and China prohibited crypto trading activities in the country. Meanwhile, Japan has imposed very strict rules for companies that want to start their business in the country.