After a challenging 2022, cryptocurrency hedge funds were able to recover from losses and turn a profit in 2023, thanks to Bitcoin’s resurgence. In 2024, hedge funds such as Pantera Capital and Alt Tab Capital expect the crypto market to continue growing, and are prepared to take on more risks.
“We might be entering the second phase of the bullish cycle, and the choice of tokens will be crucial. Our clients and management are interested in the entire cryptocurrency landscape and technology as a whole, not just Bitcoin. We believe that for the industry to progress, there must be protocols that generate substantial profits,” said Cosmo Jiang, Portfolio Manager at Pantera Capital.
Jiang revealed that BTC and ETH now make up less than 40% of Pantera Capital’s assets. The fund is making a significant investment in the token of the decentralized exchange DYDX.
Greg Moritz, the founder of Alt Tab Capital, stated that while the hedge fund remained cautious in 2023, it plans to invest in riskier cryptocurrencies in the coming year due to the anticipated growth in the industry. Moritz believes that all the prerequisites, including macroeconomic factors, are in place for this growth.
“We experienced a recovery this year, but next year will be cause for celebration,” said the hedge fund founder.
A recent study conducted by Sygnum Bank revealed that over 80% of institutional investors have expressed interest in cryptocurrencies.