Global Crypto Funds Post Sharp Gains in 2021


Global crypto funds made big gains last year after the price of most digital currencies surged, led by bitcoin and ether amid strong institutional interest and greater acceptance from regulators around the world, according to BarclayHedge, a division of Backstop Solutions.

The BarclayHedge index of cryptocurrency traders is up 138.1% for 2021, according to data released by the company on Friday, which showed results for about 39 funds, or less than 50% of the digital asset managers it tracks. This followed a record 173% gain in 2020, as crypto funds benefited from the extreme volatility fueled by the coronavirus pandemic in financial markets.

Bitcoin gained about 60% in 2021 reaching a record peak of $69,000 in November, while ether, the token used in the Ethereum blockchain, rose nearly 400%, but for December, crypto funds showed losses of about 11%, with Bitcoin and ether are also falling. Bitcoin is down 19% last year, while ether is down 20%.

“Crypto was the only non-profitable sub-segment in December, as many of the industry’s major assets suffered price drops,” said Ben Crawford, head of research at BarclayHedge. Foreigner, modest returns in 2021.

The BarclayHedge Currency Trader Index showed a gain of 2.2% last year, based on 60% of funds reported. There are currently 40 FX programs tracked by BarclayHedge, and the 2021 gains for FX funds followed a 4% rally in 2020. Yields slumped last year as global central banks kept a lid on interest rates, reducing volatility.

Meanwhile, Currency Funds yields showed a meager 0.23% increase in December.


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