Crypto Mutual Funds Overtake Spot Market in 2023

In 2023, the cryptocurrency market experienced a notable recovery from its previous downturns. Bitcoin (BTC), for example, saw its value surge from $37,202 to a significantly higher level.

This increase in Bitcoin’s price has had a positive effect on cryptocurrency-themed mutual funds, leading to an even greater appreciation in their value.

According to a report by digital asset research firm Fineqia, crypto investment funds on the market have shown exceptional performance. Major asset managers like Grayscale, CoinShares, and 21Shares reported an average return of 91 percent on their managed assets.

An analysis conducted on 168 different funds revealed that these investment vehicles generally outperformed the spot market. This trend underscores a profitable phase in the crypto investment sphere.

Funds weigh in on Bitcoin

Experts at Fineqia attribute the remarkable success of cryptocurrency funds to Bitcoin’s increasing prominence in investment portfolios.

Their research indicates that, on average, Bitcoin constitutes about 75% of these funds, in contrast to its approximately 50% dominance in the spot market. This strategic focus on Bitcoin by fund managers has played a crucial role in driving the superior performance seen in these funds.

Throughout the year, Bitcoin (BTC) has witnessed its value soar by over 100%, starkly outperforming Ether’s more modest gain of around 50%. This disparity in returns highlights the significant influence of portfolio composition on overall performance within the cryptocurrency market.

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