Crypto funds use different ways to invest in cryptocurrencies:
Venture capital funds. In this case, the fund invests in blockchain and cryptocurrencies. These are large-cap funds which are not suitable for the individual investor.
Hedge funds. They also make money by raising the value of cryptocurrency assets but their shares are traded on the stock exchange.
To select the right assets, fund experts conduct fundamental and technical analyses. First, they study available information about the coin to understand how it works. Second, they examine how the value of that asset has changed and determine the size of the trade over a certain timeframe.