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Crypto Hedge Funds and Indices

Crypto Hedge Funds and Indices


Valuation model for cryptocurrencies.


Investors considering cryptocurrency investments through hedge funds should be aware of the lack of a dominant valuation model for cryptocurrencies. However, three models have gained traction: the Network to Transaction Ratio (NVT Ratio), the "Bitcoin as Gold 2.0" narrative, and the Cost of Mining Multiple.


The performance of crypto hedge funds varies, with fundamental and discretionary funds experiencing significant losses in 2018, while quant funds have shown resilience, recording impressive returns despite market downturns. Quantitative strategies, including technical analysis and real-time data analysis from social platforms, have demonstrated efficacy in navigating the highly speculative crypto market.


Access the full report to delve into cryptocurrency valuation models and performance, offering essential insights for navigating the dynamic crypto market.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Valuation Models for Cryptocurrencies

    • Network to Transaction Ratio (NVT Ratio)

    • Bitcoin as Gold 2.0

    • Cost of Mining Multiple

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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

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