Since the beginning of 2023, a total of about 13% of all crypto funds in existence have closed. What the 21e6 Capital AG report says.
Crypto funds returned an average of 15.2% in the first half of 2023. But Bitcoin has grown by 83.3% over the same period.
Investment companies with market-neutral strategies showed the worst results at 6.8%.
During the crisis at the end of 2022, many crypto funds held assets longer than usual. However, they lost most of their gains from Bitcoin’s rise in 2023.
Some organizations closed down after losing assets stored on collapsed platforms. The FTX exchange was a favorite for hedge funds and professional crypto traders.
Some firms are “still trying to find new partners” in the banking sector. Connecting to the closure of crypto-friendly Silvergate and Signature Bank.
Along with “regulatory uncertainty, the fight for safe exchanges and custodians,” this situation has created a host of obstacles for venture firms.
“Investor confidence has improved slightly, but the inflow of funds and the launch of funds do not yet signal a complete recovery of sentiment.