Key Takeaways
- • 210k Capital, the hedge fund of UTXO Management (investing arm of BTC Inc., publisher of Bitcoin Magazine and Bitcoin Conference), returned 164% net of fees in 2024, ranking as the fifth best performing single major hedge fund according to HFR.
- • Co-founder and CIO Tyler Evans attributed the fund's 2024 performance chiefly to its holdings in bitcoin treasury companies Strategy (formerly MicroStrategy) and Metaplanet, with the fund holding about 80% of its portfolio in bitcoin equities.
- • UTXO Management plans to export the bitcoin treasury company model to markets including Latin America, Central America, the Middle East, Australia, Thailand, and Vietnam, with some projects in IPO planning and others raising capital.
- • Evans said the fund sees an opportunity for a bitcoin treasury company in every tier-one financial market globally, citing growing demand from institutional allocators for securitized bitcoin exposure.
- • HFR's 2024 data showed crypto-focused hedge funds as the leading area of overall hedge fund industry performance, with its crypto fund index returning 59.81% in 2024.
Summary
UTXO Management's 210k Capital, a bitcoin-focused hedge fund, returned 164% net of fees in 2024, making it the fifth best performing single major hedge fund according to HFR, as reported by CoinDesk and Blockspace Media. HFR's recap of its 2024 Global Hedge Fund Industry Report Q4 2024 said cryptocurrency-focused hedge funds were the leading area of overall industry performance, with its crypto fund index returning 59.81% in 2024.
Co-founder and Chief Investment Officer Tyler Evans told Blockspace that the fund's returns chiefly stemmed from investments in bitcoin strategy companies, principally Strategy and Metaplanet of Japan, where the fund was an early investor. Evans said the fund holds 80% of its portfolio in bitcoin equities, including some public bitcoin miners, and described these treasury companies as a form of securitized bitcoin exposure that makes it easier for institutions, IRAs, pension funds, registered investment advisors, wealth managers, and family offices to gain access.
Evans said the fund has shifted from courting self-made high-net-worth individuals toward institutional capital, citing fixed income investors, insurance funds, and mutual funds that operate under defined mandates. He pointed to spot bitcoin ETFs, first approved in January 2024, and to broader institutional adoption, including reported holdings by the Wisconsin Teachers' pension fund and the Abu Dhabi sovereign wealth fund. The fund hedges its positions with a number of options strategies, according to Evans, and remains bullish on bitcoin for 2025 even though bitcoin was down year-to-date at the time of reporting.
UTXO Management played a significant role in establishing Metaplanet's bitcoin treasury. Evans served as an independent director at Metaplanet, and UTXO partner Dylan Leclair acts as its head of bitcoin strategy. Another UTXO portfolio company, The Smarter Web Company, was set to IPO on the Aquis Exchange in the U.K. that week. Evans argued that Japan's lack of native bitcoin ETFs and limited access to U.S. ETFs, along with low interest rates and favorable tax treatment, position Metaplanet to gain market share.
Co-founder and Chief Investment Officer Tyler Evans told Blockspace that the fund's returns chiefly stemmed from investments in bitcoin strategy companies, principally Strategy and Metaplanet of Japan, where the fund was an early investor. Evans said the fund holds 80% of its portfolio in bitcoin equities, including some public bitcoin miners, and described these treasury companies as a form of securitized bitcoin exposure that makes it easier for institutions, IRAs, pension funds, registered investment advisors, wealth managers, and family offices to gain access.
Evans said the fund has shifted from courting self-made high-net-worth individuals toward institutional capital, citing fixed income investors, insurance funds, and mutual funds that operate under defined mandates. He pointed to spot bitcoin ETFs, first approved in January 2024, and to broader institutional adoption, including reported holdings by the Wisconsin Teachers' pension fund and the Abu Dhabi sovereign wealth fund. The fund hedges its positions with a number of options strategies, according to Evans, and remains bullish on bitcoin for 2025 even though bitcoin was down year-to-date at the time of reporting.
UTXO Management played a significant role in establishing Metaplanet's bitcoin treasury. Evans served as an independent director at Metaplanet, and UTXO partner Dylan Leclair acts as its head of bitcoin strategy. Another UTXO portfolio company, The Smarter Web Company, was set to IPO on the Aquis Exchange in the U.K. that week. Evans argued that Japan's lack of native bitcoin ETFs and limited access to U.S. ETFs, along with low interest rates and favorable tax treatment, position Metaplanet to gain market share.
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