Crypto-Themed Hedge Funds Outperform Bitcoin After Year End

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(Bloomberg) –

Hedge funds offering a more diverse portfolio of cryptocurrencies got a head start on Bitcoin last month after the world’s largest cryptocurrency began to fall from an all-time high, data shows.

While Bitcoin ended November down 6.5%, crypto-focused hedge funds were down around 2% over the same period, according to the Eurekahedge Crypto-Currency Hedge Fund Index .

The outperformance comes on top of growing evidence that altcoins could offer investors outperforming Bitcoin, especially after the latter rallied scorching to nearly $ 69,000 in early November.

Comparing the cumulative performance of Bitcoin to that of Ether, the coin in the Ethereum blockchain, shows that cutting edge alternatives could hold up. Until November, Ether was up 526% from Bitcoin’s roughly 100% gain.

Likewise, the data confirms the same theme for crypto hedge funds. The Eurekahedge Crypto-Currency Hedge Fund Index – made up of 18 equally weighted members – is up 170% for the year ended in November.

© 2021 Bloomberg LP

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