Almost 100 Crypto Hedge Funds Have Closed Because the Starting of the 12 months, and Crypto Funds Underperformed Bitcoin within the First Half of the 12 months

Based on knowledge from Swiss funding advisor 21e6 Capital AG, there have been greater than 700 cryptocurrency funds worldwide this 12 months, however because the starting of 2023, 97 funds (13%) have closed crypto funds.

Furthermore, the common return for these crypto funds within the first half of the 12 months was 15.2%, lagging behind Bitcoin’s 83.3% achieve.

Many funds are holding extra cash than ordinary on account of final 12 months’s turmoil within the trade, the report stated.

Funds with a market-neutral technique had been the worst performers, with a median return of simply 6.8 % over the January-June interval, stated Maximilian Bruckner, head of promoting and gross sales at 21e6.

Funds that made directional bets returned a median of 21.9 %. However the efficiency nonetheless lags behind Bitcoin.

Whereas many funds have needed to gradual operations on account of regulatory uncertainty over fashionable banking companions and fund governing our bodies.

However discretionary crypto funds don’t face this downside, whereas quant funds are extra susceptible to risky markets.