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Despite swinging We can describe volatility as how much the value of an asset changes over a given time. A volatility index... More 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 selloff was unexpected, saying:
Some Futures contracts are literally agreements to buy or sell an asset on a future date and for a fixed price.... More exchanges offer almost insane amounts of leverage. Bitcoin is such high-octane stuff that putting on any leverage is unnecessary.
Do you want to Be In Crypto?Join our Telegram Trading Group for FREE Trading Signals,a FREE Trading Course for Beginners and Advanced Tradersand a lot of fun! Images courtesy of Shutterstock, TradingView and Twitter.