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1ICO Market Crypto Funds
icorating.com
Crypto Funds Market Research
Secondary Contact: Steven Campbell Sales & Partnerships Manager+1 646 943 0806 [email protected] York City
The Rating Agency for the ICO Market
Primary Contact:Mikhail MironovHead of Partnerships+31 6 [email protected]
2Crypto Funds Market Research
icorating.com
About the CompanyICORating is the global market leader for independent, non-affiliated analytical research on ICO projects, conducting detailed evaluations and assigning them investment ratings.
$2B+collective AUM of the crypto funds
≈300reviewed or rated projects
20+crypto funds
50+in-house analysts
Our main aim is to create transparency in the market and provide investors with the tools they need to make informed and evidence-based decisions in order to bridge capital and transparent ICOs.
Our team of over 50 analysts have 6 years of experience on average, with companies including hedge funds, large investment banks, major consulting groups, and venture funds. Two years of analyzing the ICO market combined with this diverse set of skills and experience has enabled us to develop a unique multidisciplinary approach. We’ve evaluated over 300 ICO projects for both private and institutional clients since we started doing business in September 2016.
Over 20 crypto-focused funds with a combined $2 billion AUM regularly receive our weekly newsletter featuring ICO projects that we’ve analyzed. These funds rely on our analysis to decide which ICO projects are worthy of sending on to their in-house analysts for a closer look. Our detailed and unbiased reports evaluate ICO project technical elements, business models and tokenomics, teams, and other critical factors.
3ICO Market Crypto Funds
icorating.com
IntroductionBeginning in 2018, institutional funds started actively investing in the crypto space, changing the landscape of the industry, especially for ICO projects. As a result of active institutional participation, demands and requirements for projects have become stricter, leading to greater professionalization of this segment.
We consider this development to be broadly positive for the industry and believe that the door for additional institutional and traditional players to enter the market will continue to open further as the crypto space becomes increasingly professionalized. Currently, the influence of institutional capital on the industry is continuing to increase, especially with regard
to ICO investment as institutional players continue to grow their share of the market compared to retail and private investors. In our recent report, we aimed to inform our readers about how crypto-focused funds act, what characteristics they display, their investment tactics, and other information about the role they play in the market.
If you have additional questions about our report or about the growing presence of institutional capital in the ICO industry, feel free to email us at [email protected] ICORating Team
4ICO Market Crypto Funds
icorating.com
17% of all funds are tokenized
Fund location
Market Review
More than 30% of these tokens are intended for profit sharing, and they often have the following additional functions: Ownership of the Net Asset Value (NAV), granting of voting rights, the ability to subscribe to trading signals and tokens recommended by analysts, exclusive ICO pre-sale access, and the right to participate in “member-only” discussions.
of funds publicly disclose information on their AUM. 70% of the 80 funds that do disclose the volume of assets under their management are players with volumes of up to 100M USD under management.
Information on fund location is available for 80% of all working crypto funds. Most funds are based in the US (42%), Singapore (7%), and the UK (5%).
38%
5ICO Market Crypto Funds
icorating.com
Market Review
was in 2017, however this trend has declined in 2018. The involvement of well-established funds in the industry (those operating since the early 1990s), even those operating at a low level, should also be noted.
In 2018, 8% of all funds who disclosed information about their ROI show a much lower yield than in 2017, with a median ROI of 14% in 2018 compared to a median ROI of 600% in 2017.
The peak time for the founding of funds
Lower yield
6ICO Market Crypto Funds
icorating.com
43.7%26.6%Venture
34.9%Acellerator
56.8%4.7%
7.4%
Venture
Hedge
Algo
Arbitrage
ETF
Trading
Buy-and-Hold
Asset Management
Index AcceleratorNumberof funds
→
Strategies→
EstimatedAUM, $B
→
Distribution of Funds’ Strategies by Percentage and AUM The bar chart illustrates the distribution of funds’ strategies in percentages and estimated AUM. The lower bar represents the distribution of funds through the estimated AUM in USD. The upper bar shows the number of funds using each particular investment strategy.
HOW TO READ THE GRAPH
The distribution of funds by AUM is dominated by venture funds and accelerators. Regarding these working funds’ areas of business operation, hedge funds and venture funds are the most common.
7ICO Market Crypto Funds
icorating.com
Currently, 17% of all funds are tokenized. More than 30% of these tokens are intended for profit sharing, and often they also have the following additional functions: Ownership of the Net Asset Value (NAV), granting of voting rights, opportunity to pay a subscription for trading signals and a basket of tokens recommended by analysts, exclusive pre-sale ICO access, and the right to participate in “member-only” discussions.
Distribution of Tokenized and Non-Tokenized FundsThe following chart illustrates the distribution of funds that have their own token and funds that do not have one. The right number shows the number of funds not having a token. The left number shows number of funds that have emitted their own token.
HOW TO READ THE GRAPH
35Funds with a token 174
Funds without a token
8ICO Market Crypto Funds
icorating.com
Less than 8% of funds are in development. This category mainly includes projects that have completed an ICO in the last 6 months.
Distribution of Funds by Development StatusThe following chart illustrates the distribution of funds according to their status.
HOW TO READ THE GRAPH
169Funds are live
14Funds are in development
9ICO Market Crypto Funds
icorating.com
Distribution of Funds by Size
56
AUM < $100M AUM $100—500M AUM > $500M
15Medium-sizedFundsSmall-sized
Funds
9Large-sizedFunds
Currently, only 38% of funds publicly disclose information about their AUM. 70% of the 80 funds that disclosed the volume of assets under their management are players with a volume of up to 100M USD under management.
The chart illustrates the distribution of funds based on their category.
HOW TO READ THE GRAPH
We consider three categories of funds:• Small-sized (having an AUM of less than $100M),
• Medium sized (having an AUM between $100 and 500M,
• Large-sized (having an AUM of more than $500M).
10ICO Market Crypto Funds
icorating.com
The USA72 Funds
Singapore13 Funds
The UK9 Funds
China7 Funds
Switzerland8 Funds
Canada5 Funds
MexicoBritish Virgin Islands2 Funds
Hong Kong5 Funds
Cayman Islands6 Funds
Russia5 Funds
NetherlandsGermany3 Funds
Australia3 Funds
Jersey2 Funds
IsraelUnited Arab EmiratesTurkey1 Fund
BrazilPuerto RicoPanamaBahamas1 Fund
SpainFranceIsle of ManMaltaMonaco1 Fund
South Korea1 Fund
Seychelles1 Fund
LiechtensteinLuxembourgUkraine2 Funds
Fund Distribution by LocationThe map illustrates the distribution of funds based on where they are located. A fund’s location is considered to be the country where more than 50% of the company’s team is headquartered.
Information about the location of funds can be found for 80% of the crypto funds currently operating. Most funds are based in the US (42% of funds), Singapore (7% of funds), and the UK (5% of funds).
HOW TO READ THE GRAPH
11ICO Market Crypto Funds
icorating.com
The bar chart illustrates the distribution of funds based on their development status and investment targets. The Y-axis shows the development status, the bars colored based on investment target area. The X-axis shows the number of funds.
Most funds (in both the live and development stages) invest in the top cryptocurrencies.
HOW TO READ THE GRAPH
Fund Distribution by Target Investment Areas and Status
Funds’ Target↓
Funds in development →Currently functioning funds →
Blockchain Startups
Crypto
Blockchain Startups, Crypto
Mixed
Multiple Funds
Startups
Numberof funds → 0 10 20 30 40 50
52
12ICO Market Crypto Funds
icorating.com
Top Funds Based on Funding (ICO)
The bar chart illustrates the top ICOs conducted by crypto funds. The Y-axis shows the name of each fund, the X-axis shows the amount of funding received during the ICO in USD.
The funds with the largest amounts raised through ICOs were the Bitcoin Growth Fund, Crypto20, and Blackmoon Crypto.
of tokens function only as a form of payment for project’s services. Tokens which could easily be replaced with ETH, for example, without significantly affecting the product are included in this category.
65.8%
HOW TO READ THE GRAPH
Funds’ Name↓
Algo Land
Triaconta
Value Coin
Crypto Fund
Astronaut Capital
AICoin
AxionV
Numerai
TAAS Fund
NapoleonX
FinShi Capital
Blackmoon Crypto
Crypto20
Bitcoin Growth Fund
Funding (ICO)→ 0 $10M$5M $20M $30M $40M
$44.3M
13ICO Market Crypto Funds
icorating.com
Fund Distribution by Year Founded The bar chart illustrates the distribution of funds based on the year of foundation of the companies. The Y-axis shows the year, the X-axis shows the number of funds.
The peak point for the founding of funds was in 2017, such activity seems to be declining in 2018. The involvement of well-established funds in the industry (those operating since the early 1990s), even those operating at a low level, should also be noted.
HOW TO READ THE GRAPH
Yearof Foundation
↓
1994
1998
2003
2006
2009
2011
2012
2013
2014
2015
2016
2017
2018
Numberof Funds → 0 2010 40 60
68
14ICO Market Crypto Funds
icorating.com
FundsTarget
↓
Blockchain startups
Crypto
Multiple Funds
Crypto, Blockchain startups
Blockchain startups, ICOs
Blockchain startups
Crypto, Mining, Blockchain startups
Blockchain Startups
Crypto, Mining farm
Startups
Median AUM → 0 $200M$100M
Median AUM Distribution by Investment Target AreaThe bar chart shows the most popular targeted areas for business investment based on the median AUM of funds with particular areas targeted for investment. The X-axis shows targeted investment areas for funds, the Y-axis shows the median AUM of funds with particular areas targeted for investment.
HOW TO READ THE GRAPH
15ICO Market Crypto Funds
icorating.com
Crypto Funds ROIs
Basically, information on funds’ ROI is even less publicly available than information on assets under management. Only 8% of funds are willing to disclose information on their ROI.
The 8% of funds that disclosed such information in 2018 showed a much lower yield than in 2017, with a median ROI of 14% in 2018 in comparison to a median ROI of 600% in 2017.
Low publicity
Low yield
16Crypto Funds Market Research
icorating.com
Have a question or want to learn more about market dynamics?Contact us.
You can also subscribe to our weekly market updates at icorating.com and receive fresh market info every week.
The Rating Agency for the ICO Market
Secondary Contact: Steven Campbell Sales & Partnerships Manager+1 646 943 0806 [email protected] York City
Primary Contact:Mikhail MironovHead of Partnerships+31 6 [email protected]
