Bitcoin Outperforms Crypto Funds in 2023: Insights from 21e6 Capital AG 👏🏻
In the first half of 2023, crypto funds, on average, generated returns of 15.2%, while #bitcoin saw a price gain of roughly 84% in the same period.
#21e6 Capital AG's half-year report highlighted that crypto funds had outperformed Bitcoin in previous bull runs, but underperformed this year due to having too much cash on hand and being cautious.
The classic HODL approach to Bitcoin outperformed most crypto #funds by 68.8%. After the FTX implosion in 2022, many funds developed cash buffers, missing out on the BTC price rally.
The report emphasized that funds with large cash positions tend to underperform in a bull market unless their assets perform better than Bitcoin.
