Bitcoin and cryptocurrency hedge funds have registered handsome gains so far in 2020. This is a direct result of the surge in Defi lending and borrowing activity, as well as bitcoin’s near parabolic rally.
Owning to the Bitcoin and the aggregated cryptocurrency market’s recent roaring rally, BTC, and crypto hedge funds have reportedly registered profits upwards of the 100 percent mark. This comes amid the rising sentiment of sidestepping banks to avail quick loans through digital assets. What does this say about the cryptocurrency industry?
Bitcoin And Cryptocurrency Hedge Funds Raked In A Lot Of Moolah
As per Reuters’ latest report, Christmas for digital currency-based hedge fund owners will be 100 percent ‘merry’. Why? Well, bitcoin’s recent explosive price rally has led them to log near 100 percent gains on the back of increased crypto lending and borrowing transactions.
Madison Avenue, New York-based crypto hedge fund and asset management firm Vision Hill Group clocked 126 percent profits this year. The company opened doors to the public 2 years ago in September 2018.
Commenting on this glorious achievement, Scott Army, founder and chief executive officer of Vision Hill, said:
The emergence of decentralized finance, or DeFi, which are crypto platforms that facilitate lending outside of traditional banking institutions, was at the core of crypto funds’ robust performance this year…
DeFi Is The ‘Real Deal’ According To Digital Asset Funds
While Vision Hill has decent exposure in DeFi, the biggest investor in the decentralized finance space, Framework Ventures, a $100-million venture capital fund has high hopes from DeFi. The company believes that DeFi’s moment of achieving mainstream adoption is nigh.
This prediction of DeFi’s future outlook comes from its towering rise throughout his year. According to DeFi Pulse, the total USD value locked in decentralized finance protocols has soared to $11.1 billion. Also, Framework Ventures co-founder Michael Anderson observed that few DeFi platforms actually hold more volume than their much larger centralized exchange counterparts.
And this has led to users developing increased confidence in DeFi markets.
Users are trying to vote with their dollars in terms of how they view the capabilities of DeFi -said Mr. Anderson
This Year’s BTC Rally Was The Cherry On Top Of The Cake
Apart from the DeFi boom, crypto hedge funds had their cash registers ringing due to Bitcoin jumping almost around percent from its March lows to above $14,000. Orlando, Florida based Off the Chain Capital raked in 94 percent returns this year. Also, since it’s inception in 2016, the crypto asset fund has clocked average annual returns of 112 percent.
Whats does this tell us about the state of the bitcoin and cryptocurrency market? Are we past the time of geeks, technocrats, and cypherpunks dabbling in crypto talks and trades? Terry Culver, chief executive officer at Digital Finance Group USA, thinks so.