Report: Crypto Fund Returns Rise, But Funding Amounts Fall

Odaily星球日报 · 2023-08-12T04:13:04.000Z

Odaily Planet Daily News Swiss investment consultant 21e6 Capital found in a research report focusing on cryptocurrency hedge funds in the first half of 2023 that operators of crypto hedge fund companies find themselves in a dilemma: returns are rising, but the amount of financing but declined. According to 21e6 Capital, most funds have positive returns, but in many cases this is not enough to attract capital. As Bitcoin rallied in the first half of the year, directed funds underperformed Bitcoin. Quantitative strategies and futures-focused products also lagged Bitcoin, which surged about 84% from January to June. The report stated: “In our regular conversations with cryptocurrency funds, we sense that after a strong start to the year, market sentiment among their limited partners/investors remains lower than expected. Many funds are indeed lagging the market, and now more Difficulty demonstrating value proposition to potential investors”. According to industry insiders, many Wall Street players have stopped writing checks they had planned to write, and some continue to stay on the sidelines, in part because U.S. regulatory uncertainty has clouded the outlook for the crypto industry. (Blockworks) Previously, data from Swiss investment consultant 21e6 Capital AG showed that there have been more than 700 cryptocurrency funds around the world this year, 97 of which have closed. While these funds returned an average of 15.2% in the first half, their performance lagged Bitcoin’s 83.3% gain. Maximilian Bruckner, head of marketing and sales at 21e6, said, “Directed funds have performed well, but have lagged behind Bitcoin.” “While many funds have had to slow down operations due to regulatory uncertainty, discretionary crypto funds have not faced this problem. ." At the same time, quantitative funds were suppressed by "volatile" markets.

Odaily Planet Daily News Swiss investment advisor 21e6 Capital found in a research report focusing on cryptocurrency hedge funds in the first half of 2023 that operators of crypto hedge fund companies found themselves in a dilemma: returns rose, but financing fell. According to 21e6 Capital, most funds have positive returns, but in many cases, this is not enough to attract capital. As Bitcoin rose in the first half of this year, directional funds lagged behind Bitcoin. Quantitative strategies and futures-focused products also lagged behind Bitcoin, which soared by about 84% from January to June. The report said: "In our regular conversations with cryptocurrency funds, we feel that after a good start this year, market sentiment among its limited partners/investors remains below expectations. Many funds are indeed lagging behind the market, and it is now more difficult to show value propositions to potential investors." According to industry insiders, many Wall Street investors have stopped the checks they had planned to write, and some continue to wait and see, partly because U.S. regulatory uncertainty has cast a shadow on the prospects of the crypto industry. (Blockworks) Earlier news, data from Swiss investment advisor 21e6 Capital AG showed that there are more than 700 cryptocurrency funds in the world this year, of which 97 have been closed. Although the average return of these funds in the first half of the year was 15.2%, their performance lagged behind Bitcoin's 83.3% increase. Maximilian Bruckner, head of marketing and sales at 21e6, said, "Directional funds performed well, but lagged behind Bitcoin." "Although many funds have had to slow down operations due to regulatory uncertainty, discretionary crypto funds do not face this problem." At the same time, quantitative funds are suppressed by the "volatile" market.