The classic buy and hold, or HODL approach to Bitcoin (BTC) outperformed the majority of crypto funds by 68.8% in the first half (H1) of 2023.
According to data from Switzerland-based investment adviser 21e6 Capital AG, on average, crypto funds generated returns of 15.2% in the first half of 2023 (Jan.1 to June 30) , compared to the roughly 84% price gain BTC saw in the same period.
Crypto funds on average generated 15.2% return in the first half of 2023 lol pic.twitter.com/vb8pwYfiX9
— Alex Krüger (@krugermacro) August 5, 2023
Emphasizing the significance of such via an Aug. 2 half-year report, 21e6 Capital AG’s head of marketing Maximilian Bruckner outlined that crypto funds have been “frequently able to significantly outperform Bitcoin in previous bull runs.”
Bruckner attributed much of the underwhelming performance of crypto funds in 2023 to the challenging market conditions and significant amount of cash they had on hand in late 2022.
Following the implosion of FTX and many other crypto projects last year, the report suggested that many crypto funds opted to take risk off the table and develop cash buffers, therefore missing out on a significant BTC price rally in H1 2023.
“Funds with large cash positions will underperform Bitcoin in a bull market, unless the funds’ assets perform significantly better than Bitcoin.”
“Due…
