Though the result calls for concerns, it is still not the worst performance seen in the last five years.
According to research firm BarclayHedge, hedge funds fell by approximately 50% by the end of the year. This follows after a recent Reuters report surfaced, detailing how crypto hedge funds went through a significantly rough patch last year.
In total, BarclayHedge tracked an index of 47 crypto hedge funds. And though it kept them anonymous, data suggests they posted a loss of over 47% for the year.
BarclayHedge Says FTX May Be Responsible for Result
According to the firm, this data further proves that the sting of the collapse of giant crypto exchange FTX is still being felt across the entire length of the industry.
As earlier reported by Coinspeaker, FTX eventually filed for Chapter 11 bankruptcy protection in the United States in early November. This was after a surge in customers’ demand for withdrawals earlier in the same month, to which it didn’t have enough assets in its reserve to meet.
Meanwhile, Ben Crawford who is the head of research at the firm has made light of the situation. He admits that though the result calls for concerns, it is still not the worst performance seen in the last five years. Per BarclayHedge data, the worst year for crypto hedge funds was 2018. At the time, the index showed crypto traders were down over 60% by the year ending.
Overall, however, BarclayHedge says that the average performance of the index in the last five years is still down over 46%.
Ben Crawford also noted that the FTX collapse has brought in some serious divide in the crypto industry. According to him, the true believers of crypto now have a tougher job to do when carrying out their advocacy. But he also believes that the incident has now further emboldened skeptics to speak more openly about their views. He said:
“The more skeptical voices have turned to openly wondering if the ‘Crypto Winter’ isn’t a season at all, but a state more akin to a nuclear winter.”
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