Crypto hedge funds saw strong performance in 2024, delivering double-digit returns, according to VisionTrack data from Galaxy Digital. The VisionTrack Composite Index recorded an overall rise of 40% for the year, though most gains were concentrated in the fourth quarter.

Top Performing Funds

  • Galaxy Digital's Alpha Liquid Fund: +76.6%

  • ProChain Master Fund: +70%

  • Tephra Digital Asset Fund LP: +100%, leading the pack.

Strategy-Specific Highlights

  • Quantitative Strategy Funds: The VisionTrack Quant Directional Index rose by 53.7%, outperforming other fund strategies.

  • Fundamental Strategy Funds: The VisionTrack Fundamental Index increased by 40.4%.

Drivers of Growth

Galaxy Research attributes much of the fourth-quarter rally to:

  1. Pro-Crypto Policies: Supportive statements and policies from President-elect Donald Trump.

  2. Bitcoin ETF Approvals: Renewed investor confidence following the approval of spot Bitcoin ETFs.

Performance Comparison

Despite these impressive returns, crypto hedge funds underperformed Bitcoin, which posted a staggering 120% increase in 2024. This highlights the continued dominance of direct BTC investment over managed fund strategies for capturing bull market gains.

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