Many crypto hedge funds have posted double-digit returns in 2024. The VisionTrack Composite Index, which tracks the performance of 130 funds, has risen 40%. However, the funds’ performance has failed to match the record gains of Bitcoin, which has risen nearly 120% in the past year.
2024 has been a tough year for many crypto funds because it was the year of Bitcoin and memecoins. They were the top performing assets, and everything else lagged behind them, said Reflexive Capital founder David Kalk.
While crypto hedge funds have struggled to keep up with Bitcoin's growth, many have posted strong returns. For example, Galaxy Digital's Alpha Liquid fund gained 76,6% last year. ProChain Master Fund gained about 70%, down from 2023, when the fund gained 80% thanks to its significant Bitcoin positions.
San Francisco-based crypto investment firm Reflexive Capital posted a net return of 2024% in 106. Tephra Digital Asset Fund LP, led by former Wall Street traders Ryan Price and Raghav Chopra, ended the year with a roughly 100% return, up from 41% in 2023.
Most of the profits of all these crypto hedge funds came in the last quarter of 2024.
