Multicoin Capital, a leading hedge fund with a focus on crypto, has demonstrated unparalleled success, boasting an astounding return of over 9,000% since its inception in 2017. Despite facing substantial losses in 2022 that threatened its existence, the fund has not only rebounded but surged to new heights.
In its latest investor letter dated February 16, Multicoin Capital proudly announces a remarkable turnaround. The Multicoin Capital Master Fund has delivered an extraordinary return of 9,281% since its launch on October 1, 2017, showcasing the fund’s resilience and exceptional performance in the volatile crypto landscape.
Multicoin Capital’s Gains Surge Amid Market Rebound
The extraordinary performance of our fund in 2023, boasting an impressive 537% return, is unequivocally attributed to the resurgence of the cryptocurrency market.
In line with regulatory requirements, our firm is poised to file a Form ADV with the Securities and Exchange Commission (SEC), a standard procedure for advisers registering with the authority and exempt reporting advisors.
Previous filings indicate that our firm oversees assets under regulatory management exceeding $1.36 billion, underscoring our substantial presence in the investment landscape.
Our executives, Tushar Jain, Kyle Samani, and Matt Shapiro, emphasized the remarkable behavior of the crypto market in their investor letter.
They highlighted the market’s resilience in 2023, defying expectations and rebounding spectacularly, enabling our hedge fund to leverage the market’s momentum and achieve significant outperformance.
The remarkable returns generated by Multicoin Capital have more than offset the substantial 91.4% loss incurred in 2022.
In our investor letter, we provide clarity that the performance metrics since the fund’s inception include various investments made through side pockets, which have contributed to the overall positive outcome.
Despite navigating through a challenging bear market cycle, our executives firmly assert that this period is inconsequential for our investment firm in the grand scheme of things.
We acknowledge the hurdles posed by macro tightening, political vendettas, and the aftermath of significant financial fraud, including the fallout from the collapse of embattled crypto exchange FTX, to which our firm had exposure.
Crypto Funds See a Surge in Assets
Earlier this year, Balance, a leading digital asset custodian headquartered in Canada, proudly announced surpassing the $2 billion mark in assets under custody (AUC), reflecting the robust resurgence in crypto markets.
Similarly, Korea Digital Asset (KODA), South Korea’s premier institutional crypto custody service, has experienced an impressive surge in the volume of crypto assets under its secure custody.
In a recent disclosure, KODA unveiled a staggering growth of nearly 248% in the value of crypto assets under its stewardship during the latter half of 2023.
Established through a strategic alliance between prominent Korean bank KB Bank, pioneering crypto venture capital firm Hashed, and innovative blockchain technology firm Haechi Labs, KODA reported that the total value of these entrusted assets surged to approximately 8 trillion Korean won ($6 billion) by the close of last year, marking a substantial escalation from the 2.3 trillion won recorded at the end of June 2023.
Analysts at Bernstein Research project an astonishing trajectory for crypto funds, estimating a potential surge to $500 billion to $650 billion within the next five years, representing a significant leap from the current valuation of approximately $50 billion.