Despite swinging volatility in the market, cryptocurrency hedge funds have performed better than their mainstream counterparts in 2020.
According to the Financial Times, 19.5% in returns for crypto hedge funds in April have seen them outperform the broader hedge fund market by 100% so far in 2020. Crypto hedge funds are up 13.4% year-to-date, with mainstream funds only returning 6.7% within the same period.
In April, BeInCrypto reported that mainstream hedge funds were showing a mixed bag of results since the coronavirus-induced market panic.
The superior performance of cryptocurrency hedge funds comes despite the events of Black Thursday when the cryptocurrency market shed about 50% of its value. Pantera Capital’s Digital Asset Fund lost 33.6% in March but has since made up for the shortfall and is now up more than 32% YTD. Pantera Capital CEO Dan Morehead told the FT that the recent Bitcoin selloff was unexpected, saying:
Some futures exchanges offer almost insane amounts of leverage. Bitcoin is such high-octane stuff that putting on any leverage is unnecessary.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Sponsored