A brand new report has proven traders who held Bitcoin really outperformed most cryptocurrency funds within the first half of 2023. It’s because, between January and June, Bitcoin gained over 80% in worth. 

Crypto funds, then again, then again, returned solely about 15.2% income on common. Whereas nonetheless a optimistic return, it lagged far behind what common Bitcoin traders made by simply shopping for and sitting tight. 

21e6 Capital’s Crypto Fund Efficiency in H1 2023

In line with a lately launched report from Switzerland-based funding adviser 21e6 Capital AG, Bitcoin merchants outperformed most crypto funds by 68.8% in H1.

This isn’t stunning, as BTC was one of many best-performing crypto assets within the first half of 2023, seeing large positive aspects from prospects of the SEC approving a Spot Bitcoin ETF. The worth of Bitcoin began the yr round $15,500 and climbed to over $31,400 in July.

Bitcoin outperforming crypto funds is comparatively new, as crypto hedge funds are steadily in a position to outperform the BTC benchmark up to now considerably. However the crypto business ended 2022 with extra of a depressing sentiment, because the market witnessed regulatory uncertainties and the collapse of FTX and Terra. 

This appears to have triggered crypto hedge funds to take a safer strategy, leaving them with larger-than-normal money positions. When crypto is scorching, that money doesn’t admire like BTC would until the funds’ property carry out considerably higher than Bitcoin.

The report additionally famous that directional crypto funds typically outperformed non-directional crypto funds. Non-directional funds, like arbitrage, lending, and staking, don’t rely available on the market’s path.

Bitcoin (BTC) price chart from Tradingview.com

BTC worth holds at $29,000 | Supply: BTCUSD on Tradingview.com

Outlook for Second Half of 2023: Extra Positive factors Forward for Bitcoin?

21e6 Capital’s newest report reveals the overall sentiment of the crypto market. Crypto funds had a tough first half of 2023, with many closing down early this yr. About 13% of crypto hedge funds shut this yr, as a number of of them have struggled to current a positive worth proposition to potential traders.

The worth of Bitcoin appears to be struggling to interrupt over $30,000, however the outlook for Bitcoin within the second half of 2023 nonetheless appears optimistic. If accepted, the worth of Bitcoin is anticipated to spike additional within the coming months as major investment companies start to offer Spot Bitcoin ETFs.

This inflow of capital may spark a recent bull marketplace for all cryptocurrencies, resulting in additional positive aspects for BTC holders. This new quantity may see the worth of BTC rise above $30,000 as soon as extra.

At the time of writing, BTC is buying and selling at $29,043.

Featured picture from iStock, chart from Tradingview.com

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