Global Crypto Funds Post Strong Gains in 2021 -BarclayHedge | WTAQ News | 97.5FM 1360AM

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By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) According to BarclayHedge, a division of Backstop Solutions, global cryptocurrency funds posted big gains last year after the price of most digital currencies soared, led by bitcoin and ether amid strong institutional interest and greater acceptance from regulators around the world.

The BarclayHedge index of cryptocurrency traders rose 138.1% for 2021, according to data released by the firm on Friday, showing the results of around 39 funds, less than 50% of asset management firms numbers that it follows. This follows record gains of 173% in 2020 as crypto funds benefited from the extreme volatility the coronavirus pandemic has fueled in financial markets.

Bitcoin gained 60% in 2021 hitting a record high of $69,000 in November, while Ether, the token used for the Ethereum blockchain, jumped around 400%.

There is an air of legitimacy now. Bitcoin is no longer considered an esoteric digital currency used only on the fringes by techies and cypherpunks, according to CoinDesks’ Annual Crypto and Blockchain Review for 2021.

For the month of December, however, crypto funds posted losses of around 11%, while bitcoin and ether also fell. Bitcoin fell 19% last year, while Ether fell 20%.

Crypto was the only sub-sector that didn’t make money in December as many of the industry’s flagship assets took a hit from a sharp price drop, said Ben Crawford, head of research. at BarclayHedge.

A more traditional cousin to cryptos, FX, on the other hand, generated modest returns in 2021.

The BarclayHedges index of currency traders posted a 2.2% gain last year, based on 60% of funds reporting. There are currently 40 FX programs tracked by BarclayHedge.

The 2021 gain for FX funds followed a 4% rise in 2020. Returns were subdued last year as global central banks capped interest rates, reducing volatility.

Currency fund returns, meanwhile, rose an anemic 0.23% in December.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Alden Bentley and David Gregorio)

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