Bloomberg: Many crypto hedge funds achieved double-digit returns last year

On January 15th, according to Bloomberg News, Galaxy's VisionTrack data showed that many cryptocurrency hedge funds achieved double-digit returns last year, and the 130 funds tracked by the VisionTrack Composite Index rose 40% overall. However, compared to the significant rise in Bitcoin, these returns are insignificant. Bitcoin soared 120%, breaking the $100,000 mark for the first time. Hedge funds focused on directional and quantitative strategies for digital assets performed the best, with the VisionTrack Quant Directional Index rising 53.7%, the VisionTrack Fundamental Index growing 40.4%, and the VisionTrack Market Neutral Index increasing by about 18.5%. Insiders revealed that Galaxy Digital's Alpha Liquid Fund rose 76.6% last year. The ProChain Master Fund, a multi-strategy cryptocurrency fund launched by David Tawil in 2018, grew by about 70%, and has grown by 80% since 2023, benefiting from large token holdings. The Tephra Digital Asset Fund LP, operated by former Wall Street veterans Ryan Price and Raghav Chopra, had a full-year return of about 100%, compared to 41% the previous year.

The Galaxy Research team pointed out that cryptocurrency funds were highly volatile last year, experiencing significant pullbacks before rebounding strongly at the end of the year. Poor-performing funds failed to capture the November rally, and only a few top funds outperformed Bitcoin for the full year. Most of the gains came in the fourth quarter, when Trump became the biggest supporter of the cryptocurrency industry, and his election pushed cryptocurrencies like Bitcoin to new highs. In addition, Bitcoin's success was also due to the launch of exchange-traded funds that directly invest in Bitcoin, such as BlackRock's iShares Bitcoin Trust, which had assets under management of over $50 billion in just 11 months.