According to PANews, a recent report by 10x Research highlights the poor performance of most crypto hedge funds. Since the end of 2017, Bitcoin has seen a remarkable increase of over 565%, while the average return for typical crypto hedge funds is less than half of that, with the gap continuing to widen. Data reveals that the top 100 crypto hedge funds have an average return rate of only 272%, lagging behind by 293%, which surpasses their total returns. These funds exhibit a high monthly return correlation of 89%, making it difficult to offer effective diversification or risk hedging.
Currently, altcoins have failed to generate market excitement, and strategies like funding rate arbitrage have become ineffective, with volatility strategies also collapsing. Despite these challenges, most funds continue to rely on outdated strategies, struggling to adapt to market changes. The real advantage lies in adopting tactical strategies, shifting towards trend trading, and breaking away from conventional thinking. Meanwhile, retail investors are increasingly turning to Bitcoin ETFs instead of high-beta hedge funds, underscoring the urgent need for transformation within the fund industry.
