Cryptocurrency hedge funds expect crypto market growth in 2024

2022 was a very difficult year for cryptocurrency hedge funds, but Bitcoin's recovery in 2023 allowed asset managers to recover from losses and even make profits. Next year, according to representatives of Pantera Capital and Alt Tab Capital, hedge funds expect continued growth of the cryptocurrency market, and are going to take on more risks.

“It is quite possible that we are now moving into the second part of the bull cycle and the choice of tokens is really important. Our clients and management are interested in the entire cryptocurrency landscape and technology in general, not just Bitcoin. And we believe that if the industry continues to develop, then there must be protocols that are truly profitable,” said Pantera Capital portfolio manager Cosmo Jiang.

According to Jiang, BTC and ETH now account for less than 40% of Pantera Capital’s assets. The fund is making a significant bet on the token of the decentralized exchange DYDX.

Alt Tab Capital founder Greg Moritz said his hedge fund remained cautious in 2023, but the company will invest in riskier cryptocurrencies next year as it expects significant growth in the industry. For this, according to Moritz, there are all the prerequisites, including macroeconomic ones.

“This year we saw a recovery, but next year will be a reason for celebration,” says the hedge fund founder.