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Crypto hedge funds outperformed traditional funds in 2019, according to the analysis published by Eurekahedge and HFR firms on the IHODL portal. The former recorded 16.33% in return that year, against 10.4% of the second.

The cryptohedge funds have even been composing the portfolio of institutional investors who seek to improve their asset portfolios. Recently, a pension fund in the Fairfax retirement system in the U.S. state of Virginia allocated part of its assets in cryptocurrencies.

In Brazil, Transfero’s hedge funds stood out in 2019 in relation to their peers. In 2019, Transfero’s most active management fund (Advanced) was the best performing, returning 190% to the investor with its active management of buying and selling tokens using mathematical models, the publication states.

The advantage of investing in cryptocurrency funds is that they often manage to cushion the volatility of the cryptocurrency market, which is still quite high. And it also often allows gains above the traditional market.