Messari Fund Analysis H1’22: Examining Portfolios of Crypto Funds

Key Insights

• Polkadot is once again the top-held asset with 35% of the funds we’ve tracked invested in them.
• Solana overtook Terra as the asset with the highest circulating market cap. Overall, most of the top assets’ market caps have decreased by at least 50% due to recent price volatility.
• The top three spots are all smart contract platforms which is also the most heavily invested sector of H1.

The first half of 2022 has been chaotic for the crypto space. Negative catalysts have pushed prices to levels not seen since December 2020. Despite the volatility, new institutional investors have entered the market at a rapid rate. Hedge funds, venture capital (VC) funds, high-net-worth individuals, and DAOs continue their search for the best investments across crypto’s various sectors.

Messari usually analyzes and compiles the liquid and illiquid portfolios of top VC firms and hedge funds across crypto on a quarterly basis, but this year, we’ve combined the Q1 and Q2 analyses. Illiquid investments are selected for this analysis based on the potential of releasing a token in the near future. We use resources such as Dove Metrics, Crunchbase, and public portfolios to compile this data. Since most of the funds are assumed to hold Bitcoin and Ethereum, we omitted both in our analysis. Thanks to the public availability of these investments and the low barriers to entry in crypto compared to traditional VC, any investor can emulate the moves of institutional investors.