Source: Bloomberg
Author: yueqi Yang, Olga Kharif
The cryptocurrency hedge fund, which has survived the heavy -duty in 2022, is recovering this year, and many of them are prosperous.Some are even expected to be glory in 2024.
Take the Pantera Capital Pantera Capital of Dan morehead, as one of the earliest and largest funds in the industry.A person familiar with his performance revealed that the company's liquidity tokens fell by 80%in 2022, and this year has risen by nearly 80%as of mid -December.Dan Slavin, who is in charge of the cryptocurrency hedge fund, said the fund has doubled in 2023 after the fund fell 18%in 2022.Slavin is 31 years old.
Stoka Global LP founder Naven Choudary said the fund has risen by 268%as of November 30 this year.The fund is mainly voted for the so -called cottage.Choudary's career began in Goldman Sachs Group's technology investment banking.
From the perspective of average, the fund's performance cannot catch up with Bitcoin more than 150%of the increase in 2023. However, it is undoubtedly good news for this industry that fell into trouble after the FTX closure last year.The closure of FTX, the tide of redemption, and the difficulty of obtaining banking services have caused about one -third of the cryptocurrency hedge fund.As the market is optimistic, the United States will approve the US Exchange Trading Fund (ETF) that directly invests in Bitcoin, and the price of Bitcoin is still high. Companies that have carried this storm are now preparing to welcome a better 2024 in 2024.
"A new round of token fanatics seems to be coming," Slavin said, saying that the emotion of the cryptocurrency market this year was similar to three years ago, when Bitcoin was breaking up and creating a record high.
Bloomberg's index that tracks the performance of cryptocurrency hedge funds shows that as of December 20, the average return rate of cryptocurrency hedge funds this year was 44%, while in 2022, it was 52%of losses.Although it performed the best in the 29 strategies tracked by Bloomberg, it was still about 120 percentage points behind Bitcoin.According to COINSHARES's data as of mid -December, the index's performance is not as good as passive cryptocurrency funds. The average return of such funds in the past year is about 265%.
However, it is not easy to survive.About 250 of the 712 cryptocurrency hedge funds tracked by Galaxy Digital's VISIONTRACK were closed in the past year and a half.
"Companies with poor performance in 2022 encountered a lot of redemption in the first half of 2023," said Bailey York, which tracked cryptocurrency hedge funds in VISIONTRACK in Galaxy.
In the second half of the year, the situation began to improve. At that time, the cryptocurrency market rebounded. In some reason, investors expect that the United States will approve its first spot Bitcoin ETF.In August, GrayScale Investments LLC won in important lawsuits promoting Bitcoin ETF.York said that the fundraising activities of active funds are also heating up, and the new fund manager has entered the market, especially in Singapore, Hong Kong, Dubai, London and Switzerland.
PANTERA Capital's liquidity tokens want to prepare for the cottage market next year.Congzhan currency is tokens other than Bitcoin and Ethereum.Pantera's investment group manager Cosmo Jiang said in an interview that this is because from historical experience, after the rise of Bitcoin, the cottage coins usually perform well in the second stage of the market.
One of its heavy positions is token DYDX, which is the same name as the decentralized cryptocurrency exchange.Jiang said that Bitcoin and Ethereum accounted for less than 40%of the fund.
Some funds are getting rid of the adverse effects of FTX closure.Greg Moritz, co -founder and chief operating officer of the cryptocurrency hedge fund Alt Tab Capital, said his fund has 2%of the assets in the platform, and its claims are currently liquidated in the secondary market.
Moritz said that Alt Tab expects that the fund will rise by about 30%this year, saying that its fund is more cautious this year."In order to welcome the upcoming bull market, we are now super radical," he said.Alt Tab manages about $ 21 million in assets.
Moritz predicts that the cryptocurrency market will be jointly boosted by macro and industry factors, including inflation and stability, the Fed will no longer raise interest rates, and the Bitcoin "halve" incident will reduce supply.
"Overall, we think this year is the year of recovery," Moritz said. "Next year is really shining, it is worth celebrating a year."
