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Q1 2024 Institutional Crypto Hedge Fund & Venture Report

The state of Q1 2024 was exciting for macro traders and crypto enthusiasts. The total cryptocurrency market capitalization at the end of the quarter reached $2.75t up from $1.77t at year-end in 2023. The liquid token market reached its local height of $2.89t in mid-March as Bitcoin climbed above $70k and steady ETF inflows continued the historical streak of Bitcoin dominance. In Q1 2024, each worldview toward Bitcoin and blockchain/crypto has merit and contributed to renewed interest and discussion within the industry. The price appreciation of core industry assets underscored the validation of various investor beliefs and philosophies. Institutional actively managed strategies may seek to achieve objectives such as uncorrelated returns, capturing exposure to technological advancements, or protecting wealth from currency debasement and monetary risks. All three of these objectives are valid considerations for investors, and as liquidity returns to the blockchain, the marketplace of ideas welcomes them.

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Executive Summary

The state of Q1 2024 was exciting for macro traders and crypto enthusiasts. The total cryptocurrency market capitalization at the end of the quarter reached $2.75t up from $1.77t at year-end in 2023. The liquid token market reached its local height of $2.89t in mid-March as Bitcoin climbed above $70k. Compared to other cryptocurrencies ranked in the top ten by market capitalization, Bitcoin held between 47%-50% dominance throughout the quarter. Days after February month-end, Bitcoin reached a new all-time high for the first time since November 2021 as steady ETF inflows continued the historical streak of Bitcoin dominance. In Q1 2024, each worldview toward Bitcoin and blockchain/crypto has merit and contributed to renewed interest and discussion within the industry.

For actively managed crypto fund strategies, a firm’s investment operation varies in degrees of the crypto zeitgeist, speculation, and investments to applicable blockchain development. Not all strategies are equal in their investment objectives as each might be designed to capture different motivations of growth, speculation, or developmental technologies. Sub-sector narratives often inform investors of these three channels of motivations and incentive structures are created to generate activity and movement of value both on-chain and off-chain. The rise and fall of various asset prices are guided by the most compelling narratives reiterating the belief structures towards three distinct worldviews.

The blockchain/crypto industry embraced a range of worldviews in Q1 2024. The price appreciation of core industry assets underscored the validation of various investor beliefs and philosophies. Institutional actively managed strategies may seek to achieve objectives such as uncorrelated returns, capturing exposure to technological advancements, or protecting wealth from currency debasement and monetary risks.

All three of these objectives are valid considerations for investors, and as liquidity returns to the blockchain, the marketplace of ideas welcomes them. Download the report to keep reading.