The crypto asset management market is projected to grow even bigger in the coming years. By 2030, it’s estimated that it will become a $9.36-billion market. This growth is attributed to factors such as the increase in crypto investment and adoption and increased efforts toward digitalization in finance.
As digital assets become more accessible and are being seen as lucrative investments, there’s increased usage of such assets, as well as expanding adoption of distributed ledger technologies. In fact, crypto as a digital asset is estimated to generate over $11 billion in revenue in 2030. If you want to invest in a digital asset, have a more in-depth understanding of a particular trading platform or investment fund, or make informed decisions when it comes to your digital asset, working with digital asset managers can help you make the most out of your investment.
What Is Crypto Asset Management?
Crypto asset management pertains to how crypto asset management companies manage their client’s digital assets like a crypto asset or tokens. Given the market’s volatility, even if you have a sound strategy, without proper fund management, you may encounter significant losses. With a crypto fund manager, you’re better equipped to maximize the value and potential return of your digital assets. The manager can help you diversify your portfolios, manage risks, track your crypto asset’s performance, and access comprehensive reports. Moreover, they can help make the crypto market more accessible via professionally managed digital asset products.
How Crypto Asset Management Works
Crypto asset management typically involves subjecting your crypto asset to strategies like portfolio management, risk management, and monitoring and analysis. Your crypto asset manager can use various tools like reporting and analytics tools with integration capabilities or secure storage platforms to manage your digital asset. In addition to managing your digital asset, they can also help you in tax planning and compliance.
List of the 10 Best Crypto Asset Management Companies
Managing a digital asset like cryptocurrency can be challenging, even for a seasoned investor. A crypto asset management company can help you with monitoring and appraising your investments, portfolio management so you’re better able to meet your financial objectives, monitoring the value of your crypto assets, and more. The crypto asset management companies on this list can help you gain a more comprehensive understanding of your digital assets, make progress toward your goals, and diversify your digital assets so you’re better equipped to make more informed decisions.
1. Multicoin Capital
Founded in May 2017, Multicoin Capital is an investment firm that manages a portfolio of liquid assets. Aside from being a crypto asset management company, it also invests in cryptocurrencies, blockchain companies, and tokens for emerging projects and technical endeavors, infrastructure, and consumer and enterprise applications. It currently manages the long-duration capital of clients like venture capital funds, family offices, and individuals with high net worth. Its portfolio spans a number of assets and projects, including Alpha Venture DAO, Babel Finance, BetDEX, and Ethereum. As one of the world’s top crypto asset management companies, it has a managed AUM of nearly $9 billion.
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| PROS | CONS |
| ✅Diverse asset portfolio | ❌Smaller AUM compared to the Digital Currency Group |
| ✅Hands-on investors | |
| ✅Research-driven approach |
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2. Digital Currency Group
Digital Currency Group (DCG) has been investing in cryptocurrencies like Bitcoin and blockchain companies since 2012. It has since had over 200 equity investments, more than 50 fund investments, and over 30 token and digital asset holdings in 25+ countries, including companies like Coinbase, Ledger, and Ripple. It provides a range of financial services ranging from incubating and building blockchain startups to providing support for the growth of distributed ledger networks. Its portfolio spans companies across various industries like exchanges, Web3 infrastructure, DeFi, metaverse, non-fungible tokens (NFT), and more, such as BitGo, CoinDesk, Dapper Labs, Decentraland, and eToro. Its managed AUM is currently at $50 billion, making it one of the world’s best crypto asset management companies.
| PROS | CONS |
| ✅Sizeable AUM | ❌Challenges in transparency |
| ✅Owns subsidiaries like Grayscale and CoinDesk | |
| ✅Very diverse portfolio |
3. Pantera
Founded in 2003, Pantera is an institutional asset manager that focuses on blockchain technology. It has been investing in digital assets since 2013 and launched the first crypto fund in the US during that same year. It has a series of firsts, including launching the first venture fund focused on blockchain. Pantera currently offers three investment types: venture equity, early-stage tokens, and liquid tokens. Its portfolio covers blockchain companies and early-stage token deals, such as BitGo, Coinbase, Ripple, and Zcash, in sectors like DeFi, finance, and infrastructure. Pantera states that it has an AUM of $3.5 billion.
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| PROS | CONS |
| ✅Diversified global portfolio | ❌Not all of its projects have been successful |
| ✅Focus on blockchain technology | ❌May not be ideal for investors and traders that are averse to conservative approaches to investments |
| ✅Well-known and has a good reputation |
4. Polychain Capital
Founded in 2016, Polychain Capital is a crypto asset management and investment firm that focuses on investing in blockchain technologies and early-stage projects. It was founded by Olaf Carlson-Wee, Coinbase’s first employee. As a cryptocurrency hedge fund, it has backed Ethereum (ether token), IPFS, Cosmos, and Polkadot. It also has investments in Simple Agreements for Future Tokens (SAFTs).
| PROS | CONS |
| ✅Made several sizeable investments in different projects | ❌Its track record doesn’t necessarily guarantee positive outcomes |
| ✅Invests in blockchain technologies | ❌Takes on high-risk investments |
5. Amber Group
As a digital asset trading firm, Amber Group works with major exchanges and applications, providing them with liquidity and helping clients build, trade, and invest in a comprehensive range of digital assets. To date, this digital asset company has over $1 trillion in traded volume and works with more than 1,000 institutional clients. It has also generated $500 million in returns for its global investors. It’s headquartered in Singapore and has established a presence in countries like Dubai, Hong Kong, Australia, and Japan. Aside from being a crypto asset management company and liquidity provider, Amber Group also acts as miners (crypto mining) and validators. It provides asset management services, such as digital asset trading, investing, and more.
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It also has an investing product called WhaleFin, a digital asset platform that leverages Amber Group’s expertise in the institutional and consumer market. The all-in-one platform gives users access to tools and lets them execute trades.
| PROS | CONS |
| ✅Offers a digital asset platform | ❌Works mostly with institutions |
| ✅24/7 real-time monitoring and risk management via its threat detection and management platform | ❌Limited global presence |
| ✅Uses AI-driven data security protection technology | |
| ✅Offers a diverse range of services |
6. Grayscale
Grayscale is among the digital asset companies that are digitally native and allows its clients to purchase its products directly through brokerage platforms. It’s also the largest digital currency asset manager that offers a range of single asset and dividend funds, allowing interested individuals to have exposure to a diverse digital asset market. Its products include the Grayscale Bitcoin Cash Trust, the Grayscale Bitcoin Trust, and the Grayscale Decentralized Finance Trust. As of writing, the AUM for the Grayscale Bitcoin Trust is at $17.5 billion.
| PROS | CONS |
| ✅Diverse SEC-regulated investment products | ❌Current challenges in converting the Grayscale Bitcoin Trust into a spot Bitcoin ETF |
| ✅Each digital asset product is a separate entity backed by institutional-grade partners | ❌The BTC purchased is stored in the firm’s institutional trust |
| ✅Long track record in the industry |
7. Bitwise
Bitwise is a San Francisco-based crypto asset manager that offers tailored products and solutions for financial professionals, institutional investors, and individual investors. It offers professional crypto portfolio management services provided by expert crypto asset managers. As one of the world’s leading crypto asset management companies, Bitwise created the largest crypto index fund (OTCQX:BITW). It also works with financial advisors and investment professionals to promote research and educate their clients. It’s backed by institutional investors and asset management executives like Coinbase, General Catalyst, and Khosla Ventures.
| PROS | CONS |
| ✅Offers over 20 products in different formats, including ETFs and private funds | ❌Management fees will depend on the fund selected |
| ✅Leverages third-party custodians to protect crypto assets |
8. Wave Digital Assets (formerly Wave Financial)
Founded in 2018, Wave is one of the leading digital asset investment firms in the world. It’s also the first registered SEC-recognized investment advisor that focuses exclusively on digital assets. It offers custom digital asset investment solutions and services that include treasury management, wealth management, and protocol inventory management. Wave also offers a diverse range of both high liquidity and low liquidity funds. As one of the world’s major crypto asset management companies, it has over $1 billion in AUM and offers multiple SEC-registered strategies that help expose clients to a diverse range of digital assets.
| PROS | CONS |
| ✅SEC-registered | ❌Performance results of crypto assets are subject to several risk factors |
| ✅Offers institutional-grade qualified custodian services |
9. Dragonfly
One of the investment firms on this list is Dragonfly, which was founded in 2018 and launched its first liquid crypto fund in 2021. In 2022, it acquired one of the world’s oldest crypto funds, MetaStable Capital, which had over $400 in AUM. That same year, Dragonfly managed to raise $650 million in capital for its third crypto fund. Some of the crypto asset management company’s investments span a range of different formats and industries like exchanges, apps, and products in crypto, including crypto finance service provider Amber Group, cryptocurrency exchange Bybit, and blockchain-based real estate platform PARCL.
| PROS | CONS |
| ✅Global presence | ❌Smaller AUM |
| ✅Focused on crypto |
10. Systematic Alpha
Systematic Alpha is an award-winning crypto asset management company based in Miami. It leverages fully automated electronic execution and specializes in systematic trading in a range of markets and spreads. It has developed and used a variety of unique tools to aid in managing crypto assets such as trading robots and a unified futures database. It also uses algorithms and currently offers two programs: the Systematic Alpha Cryptocurrency Arbitrage Master Fund, Ltd. (SACAF) and the Systematic Alpha Intraday Trading (SAIT) Program. While both options offer consistent returns, cryptocurrency trading performance can still vary.
| PROS | CONS |
| ✅Research-backed approach | ❌Challenges in transparency |
| ✅Focus on risk management |
Conclusion
More than helping you stay ahead of the volatile market, crypto asset management companies and platforms can help you maximize your investment in digital assets while mitigating potential investment risks. Such companies can aid in asset tokenization, liquidity, and portfolio management. A crypto fund manager can also provide you with bespoke management services that best fit your selected digital asset.
