21e6 Capital found that bitcoin holders earned 68.8% more this year than most crypto hedge funds
Crypto exchange Bitget has released a report on social trading on its platform. Analysts concluded that users under the age of 25 make up 44% of the total number of copy trading service clients. This is a trading strategy in which the investor copies the actions of a more experienced and successful trader.
Basically, this strategy is popular in Western Europe (31%), East Asia (26%) and Southeast Asia (19%). But the share of users from the CIS and Africa who are fond of copy trading is relatively modest. However, according to the researchers, it is they who show a serious interest in this type of trading.
Most copy traders are interested in BTC (52% of the total trading volume) and ETH (44%).
“This data is indicative of the overall market sentiment. The use of modern tools, including those based on AI, makes copy trading strategies accessible and profitable for users without much knowledge and experience. We see that social trading is having a significant impact on the industry as more people come together in different communities,” said Gracie Chen, Managing Director of Bitget, commenting on the results of the study.
Meanwhile, analysts at the investment company 21e6 Capital pointed out that bitcoin owners have already earned almost 70% more this year than most cryptocurrency hedge funds. The firm noted that the average profit of such structures in the first six months was 15.2%.
The BTC exchange rate increased by 84%, so investing in cryptocurrency, taking into account the long-term perspective, has become significantly more profitable. According to the head of marketing at 21e6 Capital, Maximilian Bruckner, previously crypto funds earned much more than the first digital coin grew during the bull market.
“Funds with a lot of cash will underperform bitcoin during a period of growth if the fund’s assets do not perform significantly better than bitcoin. Due to the general mood in the cryptocurrency industry towards the end of 2022, many funds sold off their holdings of cryptocurrencies, and by 2023 were holding more fiat funds than usual. It also affected the fact that most altcoins lagged behind the growth of bitcoin. This is also a rather difficult situation for crypto funds,” said Maximilian Bruckner.
A study by 21e6 Capital notes that there is currently optimism in the digital asset market, which is why many crypto funds are buying bitcoins and other currencies again.
