After bitcoin was considered the best investment of 2021, a new balance sheet shows that the crypto market has outperformed even the top hedge funds.
According to Hedge Fund Research (HFR), hedge funds have averaged a 10% return over the past year, while cryptoassets like ether (ETH) have appreciated more than 400% over the same period.
As much as hedge funds with exposure to the stock market have achieved 10% returns, in 2021, multimarket funds with exposure to cryptoassets have appreciated 214% on average.
According to Hedge Fund Research, this is the second-best performance for hedge funds exposed to cryptoassets since the index started being tracked in 2015.
One such multimarket fund index with cryptoassets is the Bloomberg Galaxy Crypto Index, which has seen a return of 153.39% in the last year, while bitcoin has accumulated an appreciation of almost 50%.
Cryptoassets presented big returns in 2021
Hedge funds are known as multimarket funds with exposure to various assets, adopting more aggressive investment strategies than other types of investments, such as fixed income.
But not even the appreciation of some stocks in the market in 2021 has made hedge funds outperform cryptoassets. For example, while the S&P 500 index accumulated 26.9 percent, bitcoin had a 48.5 percent return.
One of the best performing hedge funds last year, Citadel had a 26% return. But in addition to bitcoin and ether, other cryptoasset stocks have seen a large appreciation in the crypto market over the past twelve months, such as TCAP, which is up 185%.