Crypto Hedge Funds Shined in 2024 But Couldn’t Top Bitcoin

Bitget App

Trade smarter

Bitget

News

CCN2025/01/14 16:00

By:CCN

Key Takeaways

Crypto hedge funds had a strong year in 2024, gaining from their exposure to digital assets.
However, Bitcoin’s rise to over $100,000 outpaced most crypto hedge funds’ performances.
Investors increasingly favored Bitcoin exchange-traded funds (ETFs) due to their lower fees and ease of access.

2024 was a strong year for cryptocurrencies, and hedge funds focused on digital assets saw impressive gains.

Still, despite solid returns, few could match Bitcoin’s (BTC) remarkable performance.

Crypto Hedge Funds’ Astonishing Year

2024 was a standout year for crypto hedge funds, with the VisionTrack Composite Index —a benchmark tracking 130 crypto-focused funds—rising by 40%.

The VisionTrack Quant Directional Index surged by 53.7%, while the Fundamental Index grew by 40.4%. The Market Neutral Index also saw a healthy increase of 18.5%.

Among the top performers, Galaxy Digital’s Alpha Liquid Fund outpaced its peers, gaining 76.6% over the year.

David Tawil’s ProChain Master Fund, which launched in 2018, posted a robust 70% return, buoyed by heavy positions in major assets like Bitcoin.

Funds that focused on fundamental analysis also saw impressive returns. Reflexive Capital, a long-biased hedge fund based in San Francisco, achieved a 106% net return.

Meanwhile, Tephra Digital Asset Fund, led by former Wall Street professionals Ryan Price and Raghav Chopra, delivered 100% gross returns, up from 41% the previous year.

Bitcoin Outperforms

While hedge funds enjoyed solid returns, their gains were no match for Bitcoin’s remarkable 120% rally, which propelled the asset above $100,000 for the first time.

Many funds differentiate themselves with proprietary or innovative strategies, often steering clear of direct investments in Bitcoin. In doing so, these funds missed out on the BTC’s extraordinary growth.

Meanwhile, investors seeking crypto exposure increasingly turned to Bitcoin exchange-traded funds (ETFs) , which offered market access without the higher fees associated with hedge funds’ strategies.

Outperforming Bitcoin remains a tough feat for crypto hedge funds. Experts note that drawdowns are particularly sensitive in the hedge fund space, making it difficult to maintain consistent exposure.

Additionally, with investors now exploring new, lower-cost ways to access crypto, hedge funds face growing challenges in retaining their edge.

Hedge Funds List

Hedge Fund Name Specialization

Pantera Capital	Focuses on venture equity, emerging tokens, decentralized finance (DeFi), and tradable cryptocurrencies.
BH Digital	Provides global crypto investments for institutional clients, blending traditional and crypto-native strategies.
Multicoin Capital	Specializes in blockchain infrastructure, project tokens, and innovative economic models for crypto projects.
Wave Digital Assets	Offers venture capital, fund management, and private wealth services in digital assets, SEC-registered.
Morgan Creek Digital	Invests in blockchain and AI startups, with a Digital Asset Index Fund focused on top cryptocurrencies like Bitcoin and Ethereum.
Systematic Alpha Fund	Employs proprietary cryptocurrency arbitrage strategies, exploiting price discrepancies across exchanges.
Off The Chain Capital	Focuses on value investing in blockchain projects and tokens, with a track record of consistent Bitcoin outperformance.
Pythagoras Investments	Utilizes data-driven algorithms targeting short-term market inefficiencies, with a strong emphasis on risk management.
BitBull Capital	Provides diversified crypto investment strategies, balancing active trading with long-term holdings.
BlockTower Capital	Engages in comprehensive cryptocurrency investments, spanning a wide range of digital assets and blockchain projects.
Alpha Liquid Fund	Uses algorithmic strategies for active trading and digital asset management, achieving 76.6% returns in 2024.
ProChain Master Fund	Employs a multi-strategy approach with a focus on major tokens like Bitcoin, returning 70% in 2024.
Reflexive Capital	A long-biased hedge fund focusing on fundamental research-based investments in tokens and blockchain, returning 106% in 2024.
Tephra Digital Asset Fund	Managed by Wall Street veterans, focusing on diversified token investments; achieved 100% gross returns in 2024.

Table created by CCN using data from BitDegree on the largest crypto hedge funds.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!