Due To Hilarious Faltering Returns, Crypto Hedge Funds Closedown In 2023 

21e calculated that around 13% of crypto hedge funds has shutdown this year, in first six months Bitcoin underperformed this year. 

Around 13% of crypto hedge funds have closedown since the start of this year, due to poor performance and hurdles in approaching banking services weighed on the industry, as per data traced by Switzerland based investment expert 21e6 Capital AG. 

Crypto funds on average bring about 15.2% revenue in the first six months of 2023, poor performing Bitcoin, which obtained 83.3% over the same period, the data given by Bloomberg.  

Several funds held larger than normal cash positions succeeding industry tumult in 2022, which jumped with the crackdown of exchange FTX. These funds fail on Bitcoin’s wave as the beginning of the year, as per a report by 21e6. Meanwhile, most key altcoins, tokens that are not Bitcoin, underperformed the largest cryptocurrency. 

Maximilian Bruckner, chief of marketing and sales at 21e6 stated that several funds are still trying hard to find new affiliates for banking services after the termination of friendly institutions Silvergate Capital Corp. and Signature Bank at the start of this year. That, besides with regulatory uncertainty and the calmer for secure exchange and safeguarding, have hurdles to access these funds.  

The Swiss firm traces the status of over 700 crypto funds globally, encompassing 123 funds around 70 firms that regularly report performance data. Since the start of this year, 97 funds, or 13%. Have closed. The US is still the governing location for the funds managers, Bruckner said, Bloomberg reported. 

Funds with market neutral strategies brought about the drub. Generating just 6.8% revenue on average from January to June. Funds that make administrating risk give revenue 21.9% on average, the data depicted.  

Some funds closed after falling assets which had been kept on platforms that crashed. FTX, specifically, was the first choice among hedge funds and professional crypto dealers. 

At the start of this year, Galois Capital, a crypto investment firm famous for betting against the Luna token before its decline, shutdown its flagship fund after it was hot by crash of the cryptocurrency exchange FTX. 

BlockTower Capital, a Miami based digital asset investment firm, loosened up a market neutral crypto fund that up till now oversaw over $100 million.