Poor performance and difficulties in accessing banking services has seen aground 13% of crypto hedge funds shut up shop so far this year, according to a report by Bloomberg citing data from Swiss investment adviser 21e6 Capital.

Bloomberg says a report from 21e6 reveals that crypto funds on average generated a 15.2% return in the first half of 2023, way behind bitcoin, which has gained 83.3% over the same period. With many funds holding inflated cash positions after the industry turmoil in 2022, they missed out on bitcoin's surge at the start of the year.

Most major altcoins meanwhile, also underperformed the world's largest cryoptcurrency.

Data from 21e6, which tracks the status of more than 700 crypto funds globally, including 123 funds across 70 firms that regularly report performance data, shows that 97 funds have shut down so far in 2023.

Market-neutral strategies performed the worst, generating only 6.8% return on average from January to June, with funds that make directional bets returning 21.9% on average.