A Complete Crypto Investment Fund List: All Types of Crypto Funds Ranked by CoinLaunch Score

A crypto investor is a person or organization that invests its own or borrowed capital in crypto assets to make a profit in the future. Investments can bring both income and loss - this is the investment risk. To reduce risk, an investor carefully considers an action plan (strategy), analyzes market changes, and chooses a reliable asset to add into their portfolio. Before you start investing, it is important to correctly assess all the risks associated with the volatile and unpredictable nature of the crypto market and consider all possible scenarios in your head, otherwise investing will turn into a waste of money and time.

A crypto investment fund is an organization that invests in a single cryptocurrency or has a diversified portfolio of cryptocurrencies. Usually, such funds operate with the money of multiple investors. Participating in crypto funds gives investors an opportunity to delegate investment decisions to professionals instead of spending time and efforts on time-consuming related activities, such as market analysis. In most cases, after an exit from a profitable investment, a crypto investment fund distributes the money among its investors.

The greatest way to find top-tier cryptocurrency funds is to visit ranking platforms, like CoinLaunch. We scour the market daily and thoroughly select and review reliable crypto investment funds that are worth your attention taking more than 80 assessment variables into account. Thanks to our unique rating system, you can save yourself the worry that you are missing out on some crucial information.

According to the level of access, cryptocurrency funds are divided into three main groups:

1. Private. These are the largest funds on the market. They manage tens of billions of dollars. Only qualified investors can participate and buy their shares.
2. Open. Available to retail investors. Such funds can be unregulated (for example, XYZ Crypto Fund) and regulated (for example, Grayscale Bitcoin Trust). In the first case, the investor simply buys a fund's shares, while in the second case, a fund's shares can be traded on a stock exchange.
3. ETFs (Exchange-Traded Funds). This cryptocurrency fund has publicly available shares on the stock exchange. The fund buys crypto assets and then sells a portion of the portfolio as collateral.

According to a type of investment activity, cryptocurrency funds can be divided into two main categories:

1. Venture fund. In this case, a fund invests in blockchain and crypto companies, usually at early stages. In most cases, it implies significant capital injections, which are not affordable for a retail investor.
2. Hedge fund. Hedge funds also make money on the rise of crypto assets’ value, but they incorporate different investment strategies and their combinations to achieve the same goals, including long/short equity strategy, merger arbitrage strategy, fixed-income arbitrage strategy, etc.

Yes, blockchain funds are legal in many jurisdictions. However, the legality of blockchain money might differ based on the particular laws and rules of each country or location. Blockchain funds may need to register with the appropriate authorities and be subjected to securities laws in some jurisdictions. Before making an investment in or establishing a blockchain fund, it's crucial to consult with legal and financial experts to understand risks,  rules and relevant regulations in your jurisdiction.