Out of the more than 700 cryptocurrency funds that exist worldwide, 97 have closed so far this year, according to Swiss investment adviser 21e6 Capital AG.
Many Crypto Funds Were Forced to Scale Back Their Operations
Out of the more than 700 cryptocurrency funds that exist worldwide, 97 have closed so far this year, according to Swiss investment adviser 21e6 Capital AG.
While the funds had an average return of 15.2% in the first quarter of 2022, they fell short of Bitcoin's 83.3% increase. According to the research, many of the funds had been keeping more cash than usual as a result of the volatility in the business the previous year.
According to Maximilian Bruckner, head of marketing and sales at 21e6, certain funds have had difficulty finding new partners for banking services.
Bruckner wrote in a blog post regarding the 21e6 statistics that "Directional funds performed well, but underperformed Bitcoin."
Discretionary crypto funds were not affected by this problem, but many funds were forced to scale back their operations as a result of regulatory uncertainty surrounding well-known banking partners and fund administrators.
The "choppy" markets, meanwhile, kept quantitative funds from rising. Bruckner added that although fund inflows and fund launches are signaling a little improvement in sentiment among investors, it has not yet fully recovered.
