Crypto Hedge Funds Hit by Shutdowns, Lagging Returns in 2023

About 13% of crypto hedge funds have shut down so far this year, as weak performance and difficulties in accessing banking services weighed on the industry, according to data tracked by Switzerland-based investment adviser 21e6 Capital AG.

Crypto funds on average generated 15.2% return in the first half of 2023, underperforming Bitcoin, which gained 83.3% over the same period, the data provided to Bloomberg News showed.

Many funds held larger-than-normal cash positions following industry turmoil in 2022, which peaked with the collapse of crypto exchange FTX. These funds missed out on Bitcoin’s surge since the start of the year, according ...