TechFlow news, according to Bloomberg, as of mid-December, Pantera Capital's liquid token fund has risen nearly 80% this year after dropping 80% in 2022. Meanwhile, Chainview Capital's fund, which fell 18% last year, has now doubled.
Naveen Choudary, founder of Stoka Global LP—a firm primarily investing in altcoin assets—said that as of November 30, the value of his portfolio tokens rose 268% this year.
According to the Bloomberg index, as of December 20, cryptocurrency hedge funds posted an average return of 44% this year, rebounding from a 52% loss in 2022. This performance lags behind passive crypto funds; data from CoinShares as of mid-December shows passive crypto funds delivered an average return of approximately 265% over the past year. According to Galaxy Digital VisionTrack, about 250 out of the 712 cryptocurrency hedge fund firms it tracks have shut down over the past year and a half.
For hedge funds that underperformed in 2022, the first half of 2023 saw a wave of redemption requests, a trend that only began shifting in the second half of the year with the emergence of spot Bitcoin ETF applications.
