Market

Altcoins offer investors superior performance compared to Bitcoin

As the cryptocurrency industry continues to gain legitimacy, more and more institutional investors are flocking to the sector for significant profits. However, the complexity and ever-evolving nature of digital assets has also led to the emergence of crypto hedge funds. These activities aim to offer investors diversified and safer investment products.

Diversification is the key

The popularity and popularity of crypto hedge funds is reflected in the fact that they outperformed Bitcoin in November, according to a survey. report Bloomberg recently. While Bitcoin closed November down 6.5%, hedge funds that offer exposure to a variety of cryptocurrencies are only down 2%.

In fact, Bitcoin has been struggling for almost a month as it continues to face resistance at $ 50,000. Since hitting a new ATH above $ 69,000, the top cryptocurrency has moved into a downtrend, losing 31.9% of its value.

One factor that determines the benefit of hedge funds is portfolio diversification. This allows exposure to some promising altcoins.

The most obvious example is ETH – up more than 500% in the last year, compared to Bitcoin’s 67%. Similarly, there are other emerging altcoins like SOL – which is currently the fifth largest cryptocurrency after growing 10,650%. Even LUNA is up 14.748%, adding extra returns to these funds.

An NFT-focused fund

With the growing demand for these products and their continued success, asset managers are expanding their offerings in more innovative ways. Bitwise launched a new NFT-focused fund earlier this week to complement its growing suite of newly launched crypto products. Cryptocurrency investment firm Pantera Capital also recently raised $ 600 million for its fourth fund, with about 75% of the capital coming from institutional investors.

Recently, crypto hedge funds saw another major milestone when they achieved record weekly inflows of $ 1.5 billion thanks to the launch of the first Bitcoin Exchange Traded Fund (ETF) in the US.

The source: CoinShares

However, the pace of growth has stagnated since then, with the latest CoinShares report showing a cash inflow of $ 88 million for the week leading up to December. The report adds that some suppliers are seeing outflows of up to 11% of total assets under management (AUM) while others are seeing inflows of nearly 14% of total assets under management.

“Investors always have mixed opinions. While some panicked at the recent decline, others saw it as an opportunity to buy … All panic selling over the past week has been in Bitcoin. ”

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

CoinX

Recent Posts

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

53 minutes ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

2 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

3 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

4 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

4 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

5 hours ago

This website uses cookies.