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In recent months, cryptocurrency has hit the mainstream and investors have been pouring money into digital assets without a second thought. Many hedge funds are now trying to build portfolios that will best perform in 2022 after Bitcoin becomes more volatile.
The “next cryptocurrency to explode 2022” is a question that can be answered by analyzing the best performing cryptocurrencies. The next cryptocurrency that will explode in value is not yet known, but it’s likely to be one of the coins on this list.
Introduction
A cryptocurrency fund, like mutual funds/ETFs, is a new investment instrument that holds a portfolio of digital tokens and cryptos instead of equities, indices, or commodities.
In this article, we’ll look at the finest crypto funds for 2022, with specific suggestions for both big and small investors.
According to Crypto Fund Research, over 800 cryptocurrency funds have been founded since the first bitcoin fund was launched in 2013. And in recent years, this new market area of the fund management business has grown at a breakneck speed.
According to PWC research, cryptocurrency funds’ total assets under management (AUM) almost quadrupled between 2020 and 2021, rising from $2,000,000,000.00 to $3.8 billion. The median fund return has also grown, rising from 30% in 2019 to 128% in 2020.
For this assessment, we looked at important performance factors such as AUMs, personnel count, and tenure of many of these top-performing funds. Crypto Fund List and Crypto Fund Research provided the majority of the data utilized.
Based on performance, these are the best cryptocurrency funds.
| Fund Name | Description | Under Management Assets | Date of Publication | Count of Employees | Score |
|---|---|---|---|---|---|
| 500 Startups is a non-profit organization that helps entrepreneurs | The Silicon Valley-based early-stage VC financing business, which began as 500 Startups, now has a portfolio of over 2500 companies in 75+ countries. They have blockchain and cryptocurrency firms in their portfolio, including BlockCypher and Hijro, and invest across a broad variety of industries. | 1.8 billion dollars | 2010 | 140+ | 4.70 |
| AltaIR Capital is a venture capital firm based in New York | AltaIR Capital is an Israel-based venture capital firm that focuses on technology investments. It was created in 2010. The fund invests in FinTech, InsurTech, Blockchain, SaaS, MedTech, AI, Cyber, and Consumer Internet firms, and has recently made many blockchain investments, including REGA Risk Sharing. | 600 million dollars | 2010 | 24 | 3.50 |
| Altana Digital Currency Fund is a fund that invests in digital currencies (ADCF) | ADCF, which is a subsidiary of Altana Wealth, has begun trading key cryptocurrencies in proportion to their market capitalisation. It has been trading cryptos since 2014 and has had amazing success with a mix of long and short strategies, employing up to 50% of its assets in the process. | 92 million dollars | 2014 | 26 | 2.80 |
| Grayscale | Grayscale, which was founded in 2013, has swiftly grown to become the world’s biggest digital currency asset manager. With a broad variety of investment products, including single-asset trusts and diversified crypto DeFi funds, they covered 73.4 percent of the digital currency market in 2021. | $55 billion dollars | 2013 | 46 | 4.60 |
| Pantera Bitcoin Fund is a hedge fund that invests in bitcoin. | Pantera Capital has been a pioneer in crypto funds since 2013, when it became the first US-based institutional asset management to concentrate only on a blockchain. The fund has grown dramatically in recent years, with over 80 startup investments and 70 early-stage token investments. | 6 billion dollars | 2013 | 53 | 4.20 |
| CoinShares | Coinshares, Europe’s first and biggest bitcoin investment fund, was founded in 2014. They provide a comprehensive range of crypto ETFs, ETPs, and other multi-asset portfolios that give diversified exposure to digital assets. | 5 billion dollars | 2014 | 54 | 4.20 |
| Polychain Capital is a company that invests in polychain | Polychain Capital, formed by Olaf Carlson-Wee, Coinbase’s first employee, aims to generate “extraordinary” returns to its investors via active management tactics. Rather than investing in enterprises, the fund focuses on digital currencies. In September 2021, they made their most recent investment in the Ethereum challenger Avalanche (AVAX). | $2 billion | 2016 | 38 | 3.20 |
| BlockTower Capital is a venture capital firm based in New York | BlockTower Capital is a crypto asset investment business located in New York that was founded by VC firms Andreesen Horowitz and Union Square Ventures. DeFi yield farming, financing rate capitalization, and other methods are among the tactics used by the business. | 150 million dollars | 2017 | 50 | 2.10 |
| Alphabit Fund is a venture capital firm that invests in | This cryptocurrency hedge fund aims to increase capital while lowering risk. Early-stage investments in over 20 crypto ventures, automated futures trading, and discretionary trading on greater liquidity cryptocurrency pairings are all part of their approach. | $56 million dollars | 2017 | 22 | 1.70 |
| 1Confirmation | 1Confirmation is a blockchain business and digital token investment fund formed by Nick Tomaino and backed by Peter Thiel, Marc Andreessen, and Mark Cuban. BTC, ETH, BAT, MakerDAO, and Augur have all been invested in. In 2021, the firm collected more than $125 million for its third fund, which would target on crypto companies and digital tokens. | the sum of $200 million | 2017 | 4 | 1.90 |
| Amentum Investment Management is a firm that specializes in asset management. | Amentum Investment Management (Amentum) is a hybrid digital currency hedge fund that focuses on blockchain-based protocols and applications. It was founded in 2017. Bitcoin, Ether, and other tokens, as well as crypto platforms like DexGrid, Connext, and NameBase, have all been invested in by the fund. | (There is no recent information available) | 2017 | 23 | 1.50 |
| Galaxy Digital Capital Management is a company that manages digital assets. | Digital assets and blockchain technology are the focus of the New York-based investing business. The business operates on a hybrid hedge fund/venture capital fund concept. Michael Novogratz founded the firm, and its AUM increased by about 600% in a single year in 2021. | 3.1 billion dollars | 2018 | 200 – 500 | 3.80 |
| Digital Asset Management by 3iQ Corp | 3iQ is Canada’s biggest digital asset management, founded in 2012 by Jean-Luc Landry and Fred Pye. It features a number of fully regulated multi-asset crypto investment funds that provide accredited investors access to digital assets including bitcoin, Ethereum, and Litecoin. | 1.5 billion dollars | 2020 | 11-50 | 3.40 |
Press releases, Cryptofundintelligence.com, Aum13f.com, Crypto Fund Research, and Crypto Fund List are some of the sources.
Large Investors’ Favorite Crypto Fund
500 Global is an excellent alternative for those searching for long-term steadiness. Their Global Fund has a stellar track record, having backed over 30 tech unicorns and more than 120 firms worth more than $100 million. They are not, however, a “pure crypto” fund.
Grayscale is the apparent winner if you’re searching for a crypto-focused investment business. The figures are self-evident. They are the world’s biggest and most reputable digital asset investment organization, with over $50 billion in assets under management.
Both of these businesses only take contributions from accredited investors, who are persons with a net worth of $1 million or more (excluding their principal home) or $5 million in assets/all beneficial owners.
Smaller Investors’ Favorite Crypto Fund
There are also more possibilities available to individual investors from less affluent origins. If you just want to invest a modest amount of money in cryptos and digital tokens, we recommend the following:
ETFs for Bitcoin and Cryptocurrencies: An exchange-traded fund (ETF) is a kind of investment instrument that follows the value of an underlying asset. Typically, the asset is a commodity such as gold or oil, a stock basket, or a significant index. ETFs are similar to stocks in that you may buy, sell, hold, and trade them as you like. The price of a cryptocurrency is tracked by a crypto ETF (or multiple currencies). As a result, ordinary investors may have easier access to cryptos without having to learn how to open and utilize bitcoin wallets, for example. (See our Bitcoin ETFs page for additional information on crypto ETFs.)
Bitcoin and cryptocurrency stocks: The blockchain business now has a slew of firms. There are also a number of publicly listed companies with significant ties to the cryptocurrency markets. “Block stocks” are the equities of firms that profit from the advent of blockchain and cryptos. Block stocks are an intriguing option for investors seeking an indirect exposure to cryptos. (For additional information on this subject, see our Block Stocks page.)
Alternatives to Crypto Mutual Funds: While there are several crypto ETFs and equities, there are no crypto mutual funds. The rationale is simple: mutual funds are prohibited from investing in high-risk assets such as cryptos due to regulatory restrictions. However, there are alternatives to mutual funds if you wish to invest in something similar. Other exchange-traded financial vehicles, crypto hedge funds, and tokenized funds exist in addition to ETFs. (For more information, see our Top Crypto Mutual Fund Alternatives page.)
Do It Yourself Is the Best Crypto Fund Alternative
The decentralized ethos of blockchain and crypto has always encouraged people to accomplish things on their own. Instead of putting your crypto assets in the hands of fund managers, you may take control of them if you are willing to put in a little more work. Keep in mind the following prerequisites and guidelines as a starting point:
Consider the long term: putting money into anything without appropriate research/preparation is gambling. Instead of running after the next meme-coin in the hopes of making a 100x profit, invest in a few high-quality digital assets and keep them for at least five years.
Pay off your bills first: settle all of your current short-term loans and obligations, notably credit card debts, before you start investing in high-risk avenues like bitcoin. (Mortgages and student loans are considered “better” debt since they have a higher likelihood of holding their value or increasing your earning potential.)
Create a savings cushion: save away at least six months’ worth of spending in case of an emergency. After you’ve paid off all of your bills, start putting money aside before you consider investing in cryptos.
We may safely move to the real stage of investing in cryptocurrencies once you have completed these procedures. To get off to a good start, use the following fundamental strategies:
- Purchase a small number of high-quality digital assets: Bitcoin is a terrific choice for beginners since it is the most popular and valuable cryptocurrency. You may choose from a variety of cryptocurrencies, but try to stay with the top 10 since they have the most liquidity and trustworthiness. (For our top selections, see our Future Winners Portfolio.)
- HODL for the long term: Constant trading in numerous cryptos, particularly for novices, is not encouraged. Long-term holding (or HODLing) has shown to be the most effective strategy of generating high returns over time. See our Blockchain Believers Portfolio to see our crypto investment community’s incredible profits in only a few years.
- Consider mixing crypto assets with conventional investments such as equities and bonds to create a portfolio. (This is referred to as the “Blockchain Believers Portfolio.”) Using this strategy, you may possibly beat conventional investors by retaining 10% of your investment in cryptocurrency while keeping the rest in equities and bonds.
Articles Related to This:
Investing in Bitcoin: A Beginner’s Guide What exactly is Bitcoin? What Is the Process? What Are Your Options for Investing in It?
How to Build Long-Term Wealth in the Digital Asset Markets with Blockchain Investing 101
What Is DeFi Investing 101? What Should You Do First? What Are the Consequences?
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The “best cryptocurrency to invest in 2022 for long-term” is a question that has been asked many times. The best cryptocurrency to invest in for the future is one that has a high chance of success, with low fees and quick transactions.
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Frequently Asked Questions
What is the most promising cryptocurrency for the future?
A: The most promising cryptocurrency for the future is Bitcoin because it has a huge market share and is currently being accepted by many stores as payment.
Which crypto to buy today for long- term?
A: If you are looking to buy a cryptocurrency that is likely to be worth more in the future, I suggest investing in one of these two cryptocurrencies.
What is the best cryptocurrency to invest in 2021?
A: This is a difficult question to answer for many reasons, one of which being that it changes constantly. There are also other factors like the market cycle and government regulations that will ultimately determine what cryptocurrency you should invest in.
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