Gemini Frontier Fund: Gemini’s venture fund invests in early-stage crypto projects and startups. Coinbase Ventures: The VC arm of Coinbase, known as Coinbase Ventures, invests in early-stage companies across the crypto ecosystem. The VC firm has a dedicated cryptocurrency fund with over $350 million in AUM as of 2021. Further, it has confirmed crypto VC investments in over 27 blockchain and cryptocurrency projects. A16z: Andreessen Horowitz, or A16z, is an investment venture capital firm based in Silicon Valley with over $10 billion in AUM across multiple funds that invest in various asset classes and growth stages.

In conventional markets, index funds track an established market index like the Dow Jones Industrial Average, S&P 500, or Nasdaq Composite. Crypto index funds function much in the same way, except they track specific crypto assets instead of companies. If an index fund tracks the Nasdaq Composite, for example, it will contain fractional shares of every company listed on that market and track its performance. Thus, through index funds, investors can buy into a diversified market without purchasing shares of each company in that market. Bitwise 10 Index Fund (BITW): The Bitwise 10 Crypto Index Fund (BITW) is listed on OTCQX, an over-the-counter (OTC) marketplace accessible through brokerage accounts.

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Launched in 2017, the BITW fund tracks the Bitwise 10 Large Cap Crypto Index. The fund limits losses through the use of algorithmic cash hedging mechanisms – i.e., it transitions into interest-bearing cash holdings during bear markets and pivots back into crypto once a bull market returns, avoiding drawdowns. CRYPTO10 Hedged (C10): Invictus Capital launched the CRYPTO10 Hedged Index Fund in March 2019. The smart index fund tracks 10 crypto assets; each capped at 15% of the total index value. As a market capitalization-weighted index, it represents approximately 80% of the total crypto market (Bitcoin, Ethereum, Cardano, Solana, Bitcoin Cash, Chainlink, Litecoin, Polygon, Stellar, and Uniswap). CRYPTO20 (C20): Also from Invictus Capital, CRYPTO20 (C20) is marketed as the first tokenized crypto market index fund.

Crypto Hedge Funds: Actively managed funds that seek to generate returns by trading cryptocurrencies. What Are Crypto Investment Funds? Crypto Index Funds: Passively track cryptocurrency indices, providing diversified exposure to the market. Crypto Venture Capital Funds: Invest in early-stage blockchain and crypto projects. Crypto Exchange-Traded Funds (ETFs): Tradeable on stock exchanges, they hold crypto assets. No matter what kind of asset you’re investing in, building a diversified portfolio can help protect against market volatility.

Conventional hedge funds invest across diverse asset classes and market segments, and professional hedge fund managers aim to generate returns regardless of underlying market conditions. To optimize returns, conventional and crypto hedge funds employ sophisticated portfolio weighting strategies and risk management techniques to protect against potential losses. And as global interest in cryptocurrency has grown, so has the amount of assets under management (AUM) at crypto hedge funds. However, in contrast to conventional products, crypto hedge funds pool capital from individual and institutional investors to purchase digital assets. Similarly, crypto hedge funds require active management and aim to generate returns amid market volatility.