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H1: 21e6 Capital Reports BTC Hodlers Outperformed Crypto Funds by 69%

H1: 21e6 Capital Reports BTC Hodlers Outperformed Crypto Funds by 69%

According to 21e6 Capital AG, crypto funds have historically outperformed Bitcoin in bull runs, but they struggled in 2023 due to market conditions and holding too much cash. In the first half of 2023, the buy and hold approach to Bitcoin outperformed most crypto funds by 68.8%, with BTC seeing gains of around 84% compared to the average return of 15.2% for crypto funds. The underperformance of crypto funds was attributed to the challenging market conditions and the large cash positions they held after the implosion of FTX and other crypto projects in 2022. Many funds opted to play it safe and develop cash buffers, missing out on the significant BTC price rally in H1 of 2023. The report also noted that most major altcoins underperformed Bitcoin during this period. Despite the struggles, all crypto fund strategies achieved positive results in 2023, but they underperformed relative to Bitcoin, especially those with exposure to altcoins or futures. The report highlighted the importance of monitoring leading futures providers and funding rates in crypto futures markets for future investment decisions. It also mentioned that investor sentiment has slightly improved, indicating potential cash inflows into the crypto sector, although a full recovery of sentiment has not yet occurred.

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