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- 1 Cryptocurrency hedge funds have generated 44% in 2023.
- 2 The market has bounced back from a 52% loss in 2022.
Cryptocurrency hedge funds are showing signs of recovery and this It experts predict a prosperous 2024 crypto market. The market has shown clumsiness in 2022 but now it is regaining its strength. The slump of 2022 shows a decrease with the beefing up of the market.
Some Firms Showing Signs of Recovery
Some of the companies like Pantera Capital led by Dan Morehead showed important growth with its token surging nearly 80% by mid-December. Similarly, Chainview Capital, led by 31-year-old Dan Slavin, doubled its performance while it had shown a decline of 18% in the previous year.
Another company Stoka Global LP, specializing in altcoins also showed a growth of 268% by November 30. Although the cryptocurrency hedge funds showed growth, it didn’t match Bitcoin’s over 150% rally this year.
The industry is presenting signs of recovery though the road is still full of challenges raised due to the collapse of many popular aims like FTX’s fall in the previous year. Recovery and banking challenges resulted in the expiry of approximately one-third of all crypto hedge funds.
Besides the escalation, its average performance still falls behind Bitcoin’s impressive gain in 2023 by approximately 120 percentage points. However, it falls short when compared to passive crypto funds, which on average recorded returns of nearly 265% last year.
What the Crypto Fund Managers Have to Say?
Many crypto hedge fund managers are positive about 2024. Greg Moritz, the co-founder and COO of Alt-Tab Capital, predicted a positive sign for the crypto market. He expected the growth by the convergence of macroeconomic and industry-specific factors, including the stabilization of inflation.
The Federal Reserve shifted away from the rate hikes and it is expected that there will be a reduction in cryptocurrency supply due to the upcoming Bitcoin halving.
Dan Slavin, the founder of Chainview Capital, showed optimism regarding the growth of tokens in the crypto market, showing ways to the distinctive mood experienced three years ago when Bitcoin surged to record highs. As the token continues to maintain its increase, prospective investors engage with fund managers and the hedging strategies remain cost-effective. Slavin has expanded his team.
Altcoins have indicated growth in the latter stages of a market following Bitcoin’s ascent. The Markets In Crypto Assets (MiCA) legislation was established in Europe in 2023. It has contributed to a more regulated trading environment. That also highlights the growth of the global acceptance of digital assets.
This shift to a more regulated market is a contrast to uncertainty to the surrounding digital assets just a year ago and could be a main factor in the predicted success of the crypto hedge funds in 2024.
Summary
Crypto Hedge Funds are indicating growth in 2024. The crypto fund managers were optimistic for crypto this year. There is a surge in the markets and predicted a recovery this year. However, in comparison to the Bitcoin rally, it is still lacking, companies highlighting good performance in comparison to the previous year.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
