Report: Crypto Fund Returns Rise But Funding Volume Falls

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 encrypted hedge fund companies found themselves in a dilemma: the rate of return rose, but the amount of financing but fell. According to 21e6 Capital, most funds are returning positively, but in many cases, that's not enough to attract capital. Targeted funds have underperformed Bitcoin as it rallied in the first half of the year. Quantitative strategies and futures-focused products also lag behind bitcoin, which surged about 84% from January to June. “In our regular conversations with cryptocurrency funds, we sense that after a strong start to the year, sentiment among their LPs/investors remains below expectations. Many funds have indeed lagged the market and are now more Difficult to demonstrate value proposition to potential investors". According to industry insiders, many Wall Street capitals have stopped the checks they had planned to write, and some continued to stay on the sidelines, partly because U.S. regulatory uncertainty has clouded the outlook for the encryption industry. (Blockworks) According to previous news, according to data from Swiss investment consultant 21e6 Capital AG, there have been more than 700 cryptocurrency funds around the world this year, of which 97 have closed. While the funds returned an average of 15.2 percent in the first half of the year, their performance lagged bitcoin's 83.3 percent gain. “Targeted funds are doing well, but lagging behind Bitcoin,” said Maximilian Bruckner, head of marketing and sales at 21e6. “While many funds have had to slow down operations due to regulatory uncertainty, discretionary crypto funds have not faced this problem. .” Meanwhile, quant funds have been crushed by “volatile” markets.