PANews reported on January 15 that according to Bloomberg, Galaxy's VisionTrack data showed that many crypto hedge funds achieved double-digit returns last year, and the 130 funds tracked by the VisionTrack Composite Index jumped 40% overall. But these gains are insignificant compared to the sharp rise in Bitcoin. Bitcoin soared 120% and broke the $100,000 mark for the first time.
Hedge funds focused on digital asset directional and quantitative strategies performed best, with the VisionTrack Quant Directional Index up 53.7%, the VisionTrack Fundamental Index up 40.4%, and the VisionTrack Market Neutral Index up about 18.5%. Galaxy Digital's Alpha Liquid Fund rose 76.6% last year, according to people familiar with the matter. ProChain Master Fund, a multi-strategy crypto fund launched by David Tawil in 2018, rose about 70%, and has risen 80% in 2023, thanks to large token holdings. Tephra Digital Asset Fund LP, run by former Wall Street veterans Ryan Price and Raghav Chopra, returned about 100% for the year, compared with 41% the year before.
The Galaxy Research team pointed out that crypto funds fluctuated greatly last year, rebounding strongly at the end of the year after a sharp pullback. Poorly performing funds failed to catch the rise in November, and only a few top funds surpassed Bitcoin throughout the year. Most of the gains came in the fourth quarter, when Trump became the biggest supporter of the crypto industry and his victory pushed cryptocurrencies such as Bitcoin to new highs. In addition, Bitcoin's success has also benefited from the launch of exchange-traded funds that invest directly in Bitcoin, such as BlackRock's iShares Bitcoin Trust, which has assets of more than $50 billion in 11 months.