This is a list of crypto funds which invest and trade in cryptocurrencies and blockchain companies.The fees list are in percent and per year. In some cases, the fees have been simplified, and the maximum fee has been listed.
Why Invest in Crypto Funds?
The crypto market is still at its very early stages. No one knows which cryptocurrency or utility token will be at the top of it’s niche in five years time.
Most probably, Cryptocurrencies are not going away, they will form part of the financial landscape for decades to come.
“The future of money is digital currency.”
Funds give you a better chance to diversify and thus to be the owner of some of the winners in the blockchain space.
Holding a fund is not a free proposition (although there are exceptions). There are yearly fees, which pick at the value of a portfolio. These fees compound over long time periods can dig sizeable holes in your portfolio’s value.
Which Crypto Fund to Invest in?
Some of these crypto funds are actively managed, others are passively managed, still, others are a mix of classic real estate investing, others invest outside of the cryptoverse.
The big risk with funds, which goes against the spirit of cryptocurrencies is that the investors do not hold the private keys.
Funds can have their funds stolen and traders can make mistakes. Anything can happen. So diversifying into more than one fund reduces risk.
If stock market funds are an indicator to follow, passive index funds have shown better performance than actively managed ones.
If Bitcoin will remain the predominant force in the cryptosphere, favouring funds which focus on altcoins that incorporate functionality that Bitcoin does not have or cannot incorporate, can be a profitable strategy …
When investing in a new asset class, dollar cost averaging over a period of time has proven to reduce the risk of buying at the top.