Crypto Hedge Funds Achieve Double-Digit Returns in 2024, But Trail Bitcoin

Crypto hedge funds saw strong performance in 2024, delivering double-digit returns, according to VisionTrack data from Galaxy Digital. The VisionTrack Composite Index recorded an overall rise of 40% for the year, though most gains were concentrated in the fourth quarter.Top Performing FundsGalaxy Digital's Alpha Liquid Fund: +76.6%ProChain Master Fund: +70%Tephra Digital Asset Fund LP: +100%, leading the pack.Strategy-Specific HighlightsQuantitative Strategy Funds: The VisionTrack Quant Directional Index rose by 53.7%, outperforming other fund strategies.Fundamental Strategy Funds: The VisionTrack Fundamental Index increased by 40.4%.Drivers of GrowthGalaxy Research attributes much of the fourth-quarter rally to:Pro-Crypto Policies: Supportive statements and policies from President-elect Donald Trump.Bitcoin ETF Approvals: Renewed investor confidence following the approval of spot Bitcoin ETFs.Performance ComparisonDespite these impressive returns, crypto hedge funds underperformed Bitcoin, which posted a staggering 120% increase in 2024. This highlights the continued dominance of direct BTC investment over managed fund strategies for capturing bull market gains.