Industry analysis

Crypto prices may have sunk in 2018, but crypto adoption is on the rise

According to owners of a new crypto hedge fund, crypto adoption is on the rise. This is despite the slump that has been witnessed in the crypto markets in 2018. The fund uses an index that measures mainstream adoption of the blockchain technology and crypto assets. And they are of the opinion that the rout cryptocurrencies have experienced this year shouldn’t deceive people.

Data shows that crypto adoption is on the rise

The opinion is that of four founders of Circuit Capital a new crypto hedge fund that is based in Singapore and San Francisco. The firm will launch in January of 2019. The founding members consist of a private equity analyst, a former Deutsche Bank AG trader and two Silicon Valley venture capitalists. They have developed an index that tracks the take-up of digital assets.

Speaking to Bloomberg, Eugene Ng. A Circuit partner said:

“Despite what is happening with prices, we’re seeing adoption growing, and a lot of people are looking to scale crypto businesses. We are starting to see talent moving into this space and institutional infrastructure developing.”

Eugene, a former ex-Deutsche Bank derivatives trader, will oversee the hedge fund’s Asian business together with Tikehau Capital analyst Aaron Tay. The fund’s U.S. operations will be run by Bo Nam and Richard Jahnke, both former technology stock analysts who have turned into venture capital investors.

Nam said that the hedge fund plans to raise $30 million in the first quarter after launch before growing its assets to over $100 million. Adding that while that’s just a fraction of the assets held by traditional macro hedge funds, its an ambitious goal for the crypto market.

The firm has developed an index that measures the mainstream adoption of cryptocurrencies and the blockchain. The benchmark uses ten data points including the hash rate, web searches for crypto articles, the number of active crypto wallets among other factors.

Do you agree that crypto adoption is on the rise despite the market slump? Share your thoughts in the comment section below.


Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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