Accurate and comprehensive crypto fund research is indispensable in today's rapidly evolving digital asset landscape. Our analysis, utilizing the extensive data from the 21e6 Crypto Fund Database, highlights the top five most common market-neutral strategies employed by crypto funds. This crypto fund database was an invaluable tool for exploring this segment of digital asset funds.
Topping our crypto fund list is the Arbitrage category. These crypto funds capitalize on price discrepancies across different markets. Although they suffered from the FTX debacle, they still play a significant role in the crypto fund universe. Delve into the intricacies of how these funds work by reading our detailed article on arbitrage funds.
Figure 1: Top 5 Market Neutral Crypto Fund Strategies in 2023
#2: Lending and Farming Crypto Funds
The second spot in our crypto fund research is occupied by lending and farming funds. These strategies provide a generally stable yield by lending and staking crypto while hedging against their fiat denomination currency. Despite setbacks like the Terra-Luna-FTX collapse, they remain a prevalent choice within the digital asset funds space.
#3: Multi-Strategy Crypto Funds
The third group comprises multi-strategy non-directional funds. They employ diverse strategies, offering them resilience in the volatile crypto market. Our crypto fund database provides detailed insights into these funds and their broad-based approach.
#4: Fund of Funds
In the fourth spot, we have fund of funds strategies. These crypto funds reduce risk by diversifying across several other funds. Some of these funds also invest in AMCs (certificates/ETNs) and similar vehicles, showcasing their commitment to a wide-ranging risk profile.
#5: Arbitrage Future-Only Funds
Completing our list are arbitrage future-only funds. These crypto funds primarily benefit from the basis trade, leveraging differences between spot and future prices.
Our crypto fund research indicates that not all market-neutral funds consistently yield high returns. Indeed, numerous funds have ceased operations due to adverse market events such as the FTX insolvency and regulatory crackdowns in the US.
The 21e6 Crypto Fund Database offers a deeper understanding of these strategies, their successes, and challenges. Remember, the number of funds doesn't necessarily indicate the largest crypto funds. The assets under management (AuM) per strategy in our crypto fund database provide a more detailed analysis.
The crypto fund landscape is diverse and constantly evolving. Despite the crypto winter, over 1,100 crypto funds are active worldwide, with new strategies emerging regularly. Whether you're conducting crypto fund research, seeking investment opportunities, or compiling a crypto fund report, our crypto fund database is the ultimate resource for the latest in market-neutral crypto funds. Stay ahead of the curve by tapping into the power of the 21e6 Crypto Fund Database today.
Crypto funds continue to grow in number
To stay ahead in the crypto fund market, which still sits at over 1,100 crypto funds world-wide despite the crypto winter, crypto fund lists provide guidance to investors. All analyses from this article, unless mentioned otherwise, were created with 21e6’s Crypto Fund Database. Subscribers use this list as a longlist for identifying investment opportunities, competitor research, and compiling their own crypto fund reports for journalistic purposes.
21e6 Capital is a Swiss investment advisor, connecting professional investors with optimal crypto investment products.
Please find more information about our authors on our homepage: 21e6.io
Jan Spörer is Due Diligence Manager at 21e6 and responsible for overseeing the content quality management of the 21e6 Crypto Fund Database.