March 28, 2023

2019 cryptocurrency hedge fund returns outperform traditional

Cryptocurrency hedge funds showed a return of 16.33% last year, while traditional funds the same indicator amounted to 10.4%. About this with reference to the analytical firms Eurekahedge and HFR reports the Financial Times.

“Bitcoin has a higher return on an annual, three-year and ten-year segments than any other asset class.” - commented on these figures, the head of Galaxy Digital crypto fund asset management Steve Kurtz.

Cryptocurrency Global Development DirectorCumberland Chris Zulke, meanwhile, is inclined to believe that involving traditional banks in cryptocurrencies is only a matter of time. It is possible, he said, that banks will act as brokers between customers and liquidity providers.

At the same time, the publication notes that cryptocurrenciesthere is also a danger to investors. As an example, the Eurekahedge index of cryptocurrency hedge funds, which, against the background of bullcoin bitcoin in 2017, grew by 1,708.50%, but in 2018 in 2018 fell by 70.27%.

According to PricewaterhouseCoopers (PwC) and Elwood, amid falling markets in 2018, cryptocurrency hedge funds suffered an average loss of 46%.

It was not easy for asset managers and 2019year. So, during the previous year, about 70 cryptocurrency hedge funds focused on pension funds, family offices and other large investors closed.

However, despite potential pitfalls, the potentially higher return on cryptocurrencies continues to attract risk-averse investors.