Bitcoin-backed Hedge Funds Beat Traditional Players in 2019

Hedge funds containing bitcoin as a primary asset were more profitable in 2019 than those that didn’t feature the cryptocurrency, according to the latest survey by Eurekahedge.

The hedge fund database found that dedicated cryptocurrency funds returned more than 16 percent profits to its investors last year. In comparison, traditional hedging strategies generated a dwarfed 10.4 percent return.

The difference, albeit minor, helped push bitcoin in the eyes of more traditional investors, with Deutsche Bank stating in its January 2020 report that the cryptocurrency appears more attractive than traditional assets. The German financial giant added that more and more people would adopt bitcoin because of its technological advantages.

Speed, for instance, is one feature that has attached itself to the bitcoin trading from the very beginning. Hedge funds involved in the crypto space sell and purchase bitcoin more quickly than they do with traditional assets. It gives them more opportunities…