{"id":88822,"date":"2023-12-28T18:00:15","date_gmt":"2023-12-28T16:00:15","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=88822"},"modified":"2025-09-13T20:22:29","modified_gmt":"2025-09-13T17:22:29","slug":"bloomberg-analysts-note-rise-in-crypto-fund-assets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bloomberg-analysts-note-rise-in-crypto-fund-assets\/","title":{"rendered":"Bloomberg analysts note rise in crypto-fund assets"},"content":{"rendered":"<div class=\\\"wp-block-text-wrappers-keypoints article_keypoints\\\">\\n<\/p>\n<ul class=\\\"wp-block-list\\\">\\n<\/p>\n<li>Average cost of crypto assets under management by hedge funds rose by 44%.<\/li>\n<p>\\n<\/p>\n<li>The sector endured a heavy blow after the FTX collapse, but participants expect further recovery.<\/li>\n<p>\\n<\/ul>\n<p>\\n<\/p><\/div>\n<p>\\n\\n<\/p>\n<p>Over the past 12 months crypto hedge funds posted an average asset-value rise of 44%, rebounding from a 55% slump in 2022. This is reported by <a href=\\\"https:\/\/www.bloomberg.com\/news\/articles\/2023-12-27\/crypto-hedge-funds-pantera-see-2024-boost-on-bitcoin-btc-rally-token-mania\\\">Bloomberg<\/a>.<\/p>\n<p>\\n\\n<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh7-eu.googleusercontent.com\/VQtMNx-XyRoJRMxByHBwe7s8IY7w1eSngar5AX7CFevA_6yWP1oeFrvfprWZxk4HpRrRkgfOpfjENoH6G1EQp4cjfYWhrB6_8CuOOUFOnRsp5gF4QsEQCsNIdqF3CMOOvGE52itHc_uHBL_aYo-Wc3M\\\" alt=\\\"Bloomberg analysts note rise in crypto-fund assets\\\"\/><figcaption class=\\\"wp-element-caption\\\">Dynamics of crypto hedge funds and Bitcoin in 2023. Data: Bloomberg.<\/figcaption><\/figure>\n<p>\\n\\n<\/p>\n<p>According to Pantera Capital&#8217;s representative, the cash token fund grew nearly 80%. One of the firm&#8217;s largest positions is the token dYdX. The share of Bitcoin and Ethereum in the total is under 40%.<\/p>\n<p>\\n\\n<\/p>\n<p>Stoka Global, which invests mainly in altcoins, by November 30 had added 268%.<\/p>\n<p>\\n\\n<\/p>\n<h2 class=\\\"wp-block-heading\\\"><strong>Trend Reversal<\/strong><\/h2>\n<p>\\n\\n<\/p>\n<p>While the average hedge-fund return lags behind Bitcoin\u2019s 150%, many market participants expect the trend to accelerate in the future.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\"><p>\\n<\/p>\n<p>\\&#8221;It looks like another token mania is coming. In many respects, 2023 was a dream year,\\&#8221; said Dan Slavin, co-founder of Chainview Capital.<\/p>\n<p>\\n<\/p><\/blockquote>\n<p>\\n\\n<\/p>\n<p>Thanks to the positive momentum of the leading cryptocurrency, potential investors are again \\&#8221;answering phone calls from fund managers, as hedging remains cheap,\\&#8221; he added.<\/p>\n<p>\\n\\n<\/p>\n<p>Bloomberg journalists noted that the crypto fund index delivered the most impressive performance among the traditional strategies they track.<\/p>\n<p>\\n\\n<\/p>\n<p>Meanwhile, 250 of the 712 crypto funds in the Galaxy Digital VisionTrack index closed in 2023. For example, Galois Capital <a href=\"https:\/\/forklog.com\/en\/news\/galois-capital-hedge-fund-closes-after-ftx-collapse\">decided to wind down<\/a> operations, as much of the firm&#8217;s funds were stuck on FTX.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\"><p>\\n<\/p>\n<p>\\&#8221;Firms that underperformed in 2022 faced a wave of redemptions in the first half of the following year,\\&#8221; said analyst Bailey York.<\/p>\n<p>\\n<\/p><\/blockquote>\n<p>\\n\\n<\/p>\n<h2 class=\\\"wp-block-heading\\\"><strong>Trend Reversal<\/strong><\/h2>\n<p>\\n\\n<\/p>\n<p>However, the situation began to change in the second half of the year, as the crypto market rebounded thanks to the buzz around spot Bitcoin-<a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETF<\/a> in the United States.<\/p>\n<p>\\n\\n<\/p>\n<p>Industry also breathed a sigh of relief after a court in November <a href=\"https:\/\/forklog.com\/en\/news\/jury-convicts-sam-bankman-fried-on-all-counts\">found<\/a> FTX founder Sam Bankman-Fried guilty on all counts, noted Strix Leviathan co-founder Sadie Rainnie. She added that investor interest in crypto investment products has grown over time.<\/p>\n<p>\\n\\n<\/p>\n<p>Greg Moritz, head of Alt Tab Capital, spoke of 2% of the fund&#8217;s assets that were trapped on the collapsed exchange. The firm is currently in the process of pursuing its claims on the secondary market.<\/p>\n<p>\\n\\n<\/p>\n<p>Moritz expects that by year-end the assets under management by the firm will rise by about 30%.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\"><p>\\n<\/p>\n<p>\\&#8221;We are in a very aggressive position for the coming bull run. Overall, this year feels like a period of recovery,\\&#8221; he stressed.<\/p>\n<p>\\n<\/p><\/blockquote>\n<p>\\n\\n<\/p>\n<p>In his view, the crypto market will gain momentum from a combination of macroeconomic and sector-specific events, including inflation stabilisation, the U.S. Federal Reserve&#8217;s pause in rate hikes, and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-bitcoin-halving\">Bitcoin halving<\/a>.<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier analysts <a href=\"https:\/\/forklog.com\/en\/news\/analysts-see-bitcoin-at-160000-after-etf-launch\">noted<\/a> the potential for the first cryptocurrency to reach $160,000 thanks to the same factors. According to CryptoQuant experts, the asset will rise to $54,000 after the ETF launch, and then higher on the backdrop of reduced miner rewards.<\/p>\n<p>\\n\\n<\/p>\n<p>As a reminder, in the period from 16 to 22 December inflows into crypto investment products <a href=\"https:\/\/forklog.com\/en\/news\/crypto-funds-post-103m-inflow-over-the-week\">amounted to $103 million<\/a>.<\/p>\n<p>\\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past 12 months, crypto hedge funds posted an average asset-value rise of 44%, rebounding from a 55% slump in 2022.<\/p>\n","protected":false},"author":1,"featured_media":88823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1285,1145,1150],"class_list":["post-88822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-funds","tag-market-analysis","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=88822"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88822\/revisions"}],"predecessor-version":[{"id":88824,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88822\/revisions\/88824"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/88823"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=88822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=88822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=88822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}