According to data from Crypto Fund Research, from January to March, there was an influx of 25 new cryptocurrency-focused venture capital and hedge funds, the highest number since Q2 2021.
This information was reported by Bloomberg. Furthermore, the number of newly established funds and organizations was almost twice as high as the number of those that closed down in 2024. This trend differed from the previous year where the ratio was nearly the same.
According to Joshua de Vos, head of research at CCData, the recent failures of hedge funds Three Arrows Capital and Alameda Research have created opportunities for new players to enter the market as it recovers.
He also pointed out that the surviving organizations have achieved impressive returns. As the cryptocurrency market is known for its cyclical nature, de Vos predicts that new crypto funds will emerge to fill the gap left by companies that couldn’t survive, as well as to capitalize on new opportunities.
