- CFL Crypto Fund Index has increased in value by 1,500% since its inception.
- The impressive performance is tied to the index’s ability to moderate losses in downtrends.
CFL one of the most comprehensive crypto fund index reported impressive results in June. CFL Crypto Fund Index surged by 16.8% finishing the month of June at 16,031. This was a significant increase from the previous record high of 14,669 in posted in January 2018. CFL is a platform developed by a research company referred to as Crypto Fund List. It follows the performance data of a group of over 45 crypto hedge funds.
Since its inception in January 2017, CFL Crypto Fund Index has increased in value by 1,500% in comparison to Bitcoin’s 1,000%. In the same period, traditional hedge funds went up only 9% as seen in the data provided by Eurekahedge Hedge Fund Index.
Crypto Fund List’s CEO, Josh Gnaizda said in a comment:
“The CFL Crypto Fund Index has significantly outperformed Bitcoin over a full market cycle is a testament to the value that active fund managers can add in an increasingly complex investment space.” He added, “While crypto remains a highly speculative asset class, it’s rather remarkable that since 2017 crypto funds have outperformed traditional hedge funds by more than 150 times.”
The impressive performance is tied to the index’s ability to moderate losses in downtrends. For instance, Bitcoin saw more than half its value disappear in the Q1 of 2018 but CFL Crypto Fund Index lost only 13.8%. On the upside, the index is not able to keep up with Bitcoin during market rallies. For example, in the Q1 of 2019, the index rose by 64% while Bitcoin shot up 163%.
The founder of CFL Crypto Fund Index Joe McMackin also said:
“Due to the large number of funds included in the CFL Crypto Fund Index, we’ve developed insights not previously available from less comprehensive attempts at indexing the sector.
He concludes:
“Notably, the index demonstrates that experts in the space can significantly outperform Bitcoin.”
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