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Laxman Pai, Opalesque Asia: From September to December 2023, crypto hedge funds grew their total AUM by +41.62% from $10.75b to $15.22b, said a report.
According to the '2024 Institutional Crypto Hedge Fund & Venture Report', by Galaxy, though crypto-dedicated liquid hedge fund AUM picked up pace in Q4 2023, the top 20 liquid hedge funds still maintain roughly 71.6% of total hedge fund AUM.
At year-end in 2022, this figure was 75%, a marginally positive sign to see net new funds growing the crypto hedge fund market. However, for top crypto fund managers competing with a difficult 2022 and a wave of new hedge funds from the previous cycle, fundraising for liquid strategies was met with many challenges.
Roughly 34% of crypto-dedicated hedge funds have a 3+ year track record; 56.2% have a fund inception date between 1-3 years. Less than 7.2% of crypto hedge funds have a 4+ year track record, the report said.
Meanwhile, fundamental strategies saw the largest increase, jumping from $7.82b in total AUM to $11.46b in AUM at the same time. Quant Directional strategies ended the year with roughly $1.81b and Market Neutral funds grew to $1.97b.
The report pointed out that passive/beta offerings including single-asset vehicles and multi-asset index products maintain crypto fund market dominance. From month-end in September to year-end in December, all liquid fund strategies grew from $41.73b to $63.67b.
At year-end passive/beta offerings held roughly 76% o...................... To view our full article Click here
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