There are many ways to look at the financial sector. One option is to compare crypto hedge funds with their traditional brethren to see who performs better.
Investing in cryptocurrency is always a risky venture.
Crypto Hedge Funds Lead This Dance
That also applies to more traditional markets, as there is no guarantee of profit by any means.
So far, the crypto hedge funds are doing quite well over the past 12 months.
Despite rather modest gains of 13.4% on average, the momentum appears more than promising.
Traditional hedge funds, on the other hand, are down by 6.7% on average.
This creates a very big divide between the different segments, and it shows the potential of the cryptocurrrency markets.
These statistics are interesting, but they also need to be put in perspective.
If the COVID-19 pandemic had not occurred, things may have looked very different for both segments.
Stock markets took a massive beating in recent months, although Bitcoin has seen its own dip of over 50% in quick succession.
Keeping that in mind, crypto assets appear to perform better on the rebound compared to stocks and most commodities.
How these figures will look in twelve months from now, is difficult to predict.
Anything can, and often will happen in the financial world.