Coin Edition -
- Crypto hedge funds are rebounding in 2023 after a tough 2022.
- Despite the recovery, the average fund performance still lags behind Bitcoin’s rally.
- Bitcoin’s price surge and optimism around potential U.S. ETF approval fuel predictions of a “Token Mania” in 2024.
In the aftermath of a tumultuous 2022, crypto hedge funds are bouncing back and gearing up for what some predict as a “Token Mania” in 2024. According to a report from Bloomberg, numerous funds are not only recovering but are also anticipating a prosperous year ahead.
Pantera Capital, renowned as one of the industry’s oldest and largest funds, has reportedly experienced a remarkable turnaround. Per the Bloomberg report, the firm’s liquid-token fund surged by nearly 80% in performance this year as of mid-December. The development marked a significant recovery from a comparable decline recorded in 2022.
Furthermore, Chainview Capital has reportedly mirrored Pantera Capital’s success by doubling its value after an 18% setback in the previous year. Additionally, Stoka Global LP, focused on investing in altcoins, reported a staggering 268% gain as of November 30, as stated by founder Naveen Choudary.
Meanwhile, Bloomberg noted that the average performance of the funds has yet to match Bitcoin’s more than 150% rally this year. However, the report argued that the overall reversal of fortunes is a positive sign for the industry, given that the space had lost roughly one-third of all crypto hedge funds in 2022.
The anticipation for another ‘token mania’ is fueled by the sustained elevated price of Bitcoin. Dan Slavin of Chainview Capital expressed the sentiment. Slavin stated that the current mood in the crypto market resembles that of three years ago when Bitcoin embarked on a breakout that propelled it to record highs.
Moreover, optimism of a fruitful 2024 prevails amid the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the United States and the upcoming Bitcoin halving.
The post Crypto Hedge Funds Rebound, Predicting “Token Mania” in 2024 appeared first on Coin Edition.