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  • Writer's pictureSarah Dixon

Crypto Funds vs Bitcoin: H1 2023 Performance

Crypto Funds vs Bitcoin: H1 2023 Performance
Crypto Funds vs Bitcoin: H1 2023 Performance

According to a recent report, Bitcoin investors performed better than most cryptocurrency funds in the first half of 2023. During this period, Bitcoin's value increased by over 80%, while crypto funds only returned an average profit of 15.2%. Although still a positive return, it was significantly lower than what Bitcoin investors gained by simply buying and holding onto their investment.

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Crypto Funds vs Bitcoin: H1 2023 Performance 21e6 Capital’s Crypto Fund Performance in H1 2023

A report by 21e6 Capital AG, an investment adviser based in Switzerland, has revealed that Bitcoin traders outperformed most crypto funds by 68.8% in the first half of the year. This may not come as a surprise, as BTC was one of the best-performing crypto assets during that period, with its price surging from around $15,500 at the beginning of the year to over $31,400 in July. The gains were largely attributed to the prospects of the SEC approving a Spot Bitcoin ETF. Crypto Funds vs Bitcoin: H1 2023 Performance

Crypto funds on average generated 15.2% return in the first half of 2023 lol — Alex Krüger (@krugermacro) August 5, 2023

Bitcoin's outperformance of crypto funds is a recent phenomenon. In the past, crypto hedge funds were frequently able to outperform the BTC benchmark. However, the crypto industry ended 2022 with a gloomy sentiment as the market faced regulatory uncertainties and the collapse of FTX and Terra.

As a result, crypto hedge funds have taken a safer approach, leaving them with larger cash positions than usual. When the crypto market is hot, this cash does not appreciate like BTC unless the funds' assets perform significantly better than Bitcoin.

The report also highlights that directional crypto funds generally outperformed non-directional crypto funds. Non-directional funds, such as arbitrage, lending, and staking, do not depend on the market's direction.

BTC price holds at $29,000 | Source: BTCUSD on
BTC price holds at $29,000 | Source: BTCUSD on

Outlook for Second Half of 2023: More Gains Ahead for Bitcoin?

According to a report by 21e6 Capital, the overall sentiment of the crypto market has been negative in the first half of 2023, with many crypto funds closing down. Around 13% of crypto hedge funds have shut down due to difficulties in presenting a favorable value proposition to potential investors.

Although the price of Bitcoin has struggled to break over $30,000, the outlook for Bitcoin in the second half of 2023 is still positive. If approved, the price of Bitcoin is expected to increase in the coming months as major investment companies start to offer Spot Bitcoin ETFs.

This influx of capital could lead to a fresh bull market for all cryptocurrencies, resulting in further gains for BTC holders. As a result, the price of BTC may rise above $30,000 once again.

As of now, BTC is trading at $29,043.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


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