BarclayHedge Reported Big Losses of Crypto Hedge Funds in 2022
2023.01.17 15:23
BarclayHedge Reported Big Losses of Crypto Hedge Funds in 2022
By Tiffany Smith
Budrigannews.com – According to a report released on Tuesday by the research company, hedge funds trading cryptocurrencies that are tracked by index provider BarclayHedge ended the year 2022 with a loss of almost 50%. This is a sign that the collapse of the cryptocurrency exchange FTX continues to have an impact on the industry.
In November, FTX filed for Chapter 11 bankruptcy protection in the United States after a dramatic collapse that shaken the industry.
According to Ben Crawford, BarclayHedge’s head of research, “true believers” in cryptocurrency were “cranking up their evangelizing to 11” since FTX’s demise. Crawford also stated that the debate regarding trading cryptocurrencies had become polarized.
Crawford stated, “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.” This is because the ‘Crypto Winter’ is not a season.
According to the data, an index of 47 hedge funds, whose names BarclayHedge keeps secret, experienced a loss of more than 47% for the year.
However, the index’s performance in 2022 was not its worst in the past five years. According to BarclayHedge, a subsidiary of Backstop Solutions, the Cryptocurrency Traders Index ended 2018 with a drop of more than 60%.
According to BarclayHedge data, the average five-year performance of the index would have been over 46% if an investor had been able to maintain their position.
