Key Takeaways
- • Blockchain adoption is expected to accelerate significantly in 2018, with widespread global expansion beyond proof-of-concept projects into real-world production applications across multiple sectors.
- • Cryptocurrency funds are projected to launch at a rate of approximately three per week throughout 2018, with expectations of 165 new funds by year-end, positioning 2018 as the largest year for cryptocurrency fund formation to date.
- • Institutional and mainstream Wall Street investors are actively increasing capital deployment into blockchain-enabled businesses, with major players like ICE reportedly investing over $1.1 billion in 2018 to build scalable platforms for digital asset trading.
- • Cryptocurrency markets are anticipated to remain volatile in 2018 with continued growth but significant "hiccups," including potential for material corrections from 2017's speculative highs, despite sustained investor enthusiasm.
- • Early-stage blockchain and crypto ventures are capturing substantial venture capital, with notable deals including a $75 million Series B funding round for hardware wallet provider Ledger and $18 million seed investments flowing into the ecosystem.
Summary
Institutional and alternative investors are positioning for substantially increased blockchain and cryptocurrency exposure in 2018, driven by accelerating adoption of distributed ledger technology and the emergence of dedicated digital asset investment vehicles. The phenomenon is global in scope, with blockchain moving beyond experimental proof-of-concept phases into tangible production deployments. While 2017 saw fewer real-world applications enter the market than industry analysts anticipated, the year generated unexpected momentum through cryptocurrency price appreciation and the explosive growth of initial coin offerings (ICOs).
The institutional investor base is expected to deepen significantly in the coming year. Cryptocurrency-focused funds are anticipated to launch at an average rate of three per week throughout 2018, resulting in approximately 165 new funds by year-end—positioning 2018 as a record year for cryptocurrency fund establishment. This expansion reflects mounting capital allocation from both institutional and mainstream Wall Street investors actively backing blockchain-enabled innovation. Major infrastructure players are making substantial commitments: ICE has reportedly invested more than $1.1 billion in 2018 to develop a scalable, open platform capable of handling digital assets across multiple asset classes and use cases.
Early-stage funding activity demonstrates robust investor appetite across the blockchain ecosystem. Notable transactions include a $75 million Series B funding round secured by Ledger, a secure hardware wallet manufacturer, and $18 million deployed in seed-stage investments. However, volatility remains a defining characteristic of cryptocurrency markets. Industry observers anticipate 2018 will continue the 2017 trend of substantial price appreciation alongside significant volatility and potential for material corrections. The consensus view acknowledges cryptocurrency will remain prone to cyclical disruptions and speculative excess, yet maintains bullish conviction regarding longer-term blockchain technology adoption and institutional capital integration into the digital asset ecosystem.
The institutional investor base is expected to deepen significantly in the coming year. Cryptocurrency-focused funds are anticipated to launch at an average rate of three per week throughout 2018, resulting in approximately 165 new funds by year-end—positioning 2018 as a record year for cryptocurrency fund establishment. This expansion reflects mounting capital allocation from both institutional and mainstream Wall Street investors actively backing blockchain-enabled innovation. Major infrastructure players are making substantial commitments: ICE has reportedly invested more than $1.1 billion in 2018 to develop a scalable, open platform capable of handling digital assets across multiple asset classes and use cases.
Early-stage funding activity demonstrates robust investor appetite across the blockchain ecosystem. Notable transactions include a $75 million Series B funding round secured by Ledger, a secure hardware wallet manufacturer, and $18 million deployed in seed-stage investments. However, volatility remains a defining characteristic of cryptocurrency markets. Industry observers anticipate 2018 will continue the 2017 trend of substantial price appreciation alongside significant volatility and potential for material corrections. The consensus view acknowledges cryptocurrency will remain prone to cyclical disruptions and speculative excess, yet maintains bullish conviction regarding longer-term blockchain technology adoption and institutional capital integration into the digital asset ecosystem.
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