The Value of Crypto-fund Assets Rises: Bloomberg Report

According to a recent report by Bloomberg, cryptocurrency hedge funds have seen an average increase in asset value of 44% in the past 12 months, after experiencing a 55% decline in 2022.

A spokesperson for Pantera Capital, one of the largest hedge funds, reported a growth of nearly 80% in their liquid token fund.

The fund’s largest position is currently in dYdX coin, with Bitcoin and Ethereum making up less than 40% of the fund’s total assets. Stoka Global, which primarily invests in altcoins, has seen a 268% increase in value as of November 30.

Even though the average return of crypto hedge funds is lower than Bitcoin’s 150%, many experts predict accelerated growth in the future. Dan Slavin, co-founder of Chainview Capital, believes that 2023 will be a year of “token mania” and that the industry is headed towards a very positive year.

Thanks to the strong performance of the first cryptocurrency, potential investors are showing renewed interest in hedge funds, as hedging remains a cost-effective option.

Bloomberg reporters noted that the performance of the crypto fund index has been more impressive than other traditional investment strategies. However, not all crypto hedge funds have been successful.