In 2024, Bitcoin showed significant growth that even the best crypto hedge funds could not surpass. Bitcoin increased by 120%, whereas the VisionTrack Composite hedge fund index rose by 40%.
Hedge Funds Struggle to Outperform Bitcoin's Record
Several crypto hedge funds saw positive returns, but none could match Bitcoin’s outstanding performance. Funds that focused on digital assets other than Bitcoin missed out on its tremendous growth. David Kalk, founder and CIO of Reflexive Capital, noted it was a challenging year for many funds as Bitcoin and meme coins were the top assets of the year.
Directional and Quantitative Strategies Bolster Funds
Despite the challenges, funds focusing on directional and quantitative strategies achieved significant results. The VisionTrack Quant Directional Index gained over 53%, while the VisionTrack Fundamental Index grew over 40% during the same period. Galaxy Digital’s Alpha Liquid Fund reported a 76.6% increase, and the ProChain Master Fund was notable for its approximately 70% increase.
Macro Situation and Bitcoin Support
Bitcoin’s growth was supported by macroeconomic developments. President-elect Donald Trump, a former crypto skeptic, emerged as one of its most vocal supporters, which helped propel Bitcoin and other cryptocurrencies to new highs. Additionally, the successful launch of funds investing directly in Bitcoin provided further impetus for its growth.
The year 2024 was impressive for Bitcoin, which demonstrated significant growth surpassing many crypto hedge funds. Strategies focused on quantitative analysis achieved the best results, but Bitcoin remained the leader in 2024.
