Crypto hedge funds ended 2022 down practically 50%

LONDON, Jan 17 (Reuters) – Hedge funds trading crypto currencies tracked by index service provider BarclayHedge ended 2022 down nearly 50%, the research study company stated on Tuesday, an indication that the collapse of the cryptocurrency exchange FTX continues to ripple through the market.

FTX declared Chapter 11 insolvency defense in the United States in November following its amazing collapse that sent out shivers through the market.

Ben Crawford, head of research study at BarclayHedge, stated given that FTX was up to pieces, the discussion around trading crypto currencies had actually ended up being polarised which “real followers” in crypto were “cranking up their evangelizing to 11.”

“The more hesitant voices have actually relied on freely questioning if the ‘Crypto Winter’ isn’t a season at all, however a state more comparable to a nuclear winter season,” stated Crawford.

An index of 47 hedge funds, the names of which BarclayHedge keeps confidential, published a loss of over 47% for the year, the information stated.

The 2022 outcome was not the worst efficiency the index has actually seen in the last 5 years. The Cryptocurrency Traders Index ended 2018 down over 60%, stated BarclayHedge, which becomes part of the business Backstop Solutions.

The typical 5-year efficiency of the index if a financier was able to hold to their position would have been over 46%, BarclayHedge information stated.

Reporting by Nell Mackenzie Editing Yoruk Bahceli, William Maclean

Our Standards: The Thomson Reuters Trust Principles.

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