Crypto Fund Investors Quit Positions Due To Poor Performance Indicators

Many of the crypto fund investors decided to quit their positions as the Bitcoin took the spotlight while other altcoins continue tanking and the interest for the fund-based investment seems to be declining. In our latest cryptocurrency news today, we find out more about this report.

During the earliest days of crypto, the huge gains put a very small army of new funds on the market. The increase in volatility and the gains that were offered turned into huge promises for investors but now they crypto fund investors feel pressured to quit their positions on crypto. Unlike the traditional investors and holders, the fund managers are different when facing quarterly and annual evaluations.

The poor performance and the huge corrections started looking bad on the portfolios of the crypto funds. This is one of the major reasons why the digital asset funds may not be suited for the ride during bear markets and deep losses. The behavior is no exception as the funds dropped the stocks that went on to outperform. This form of capitulation usually happens as the crypto trading remains active. Bitcoin still offers intensive trading along with the futures and other options while the spot trading is also marking some major volumes. The worst happened during the 25-month-long bear market for the altcoins which hurt those that aimed to invest in the assets. Back in 2018, things looked better but since then, these old assets went to erase more than 90 percent of their value.

Even Bitcoin remaining an alternative asset has a far unknown performance profile in regards to traditional assets such as stocks and gold. As the year started, one of the indicators for institutional interest shows a very low appetite for BTC from both retail and large-scale investors. The popular Grayscale Capital saw its GBTC shares trade at a price that lowers the price of Bitcoin. At current prices, Bitcoin is trading at $7,318 while Grayscale’s crypto component is equal to prices around $6,990.

Bitcoin (BTC) started 2020 as volatile as usual and it’s safe to say that the start of the new year is everything that traders expected.