During the first half of 2023, bitcoin significantly outperformed crypto hedge funds, with a gain of 83% compared to an average return of 15% for the funds. Hedge funds faced challenges due to the closure of FTX, larger cash positions, and underperforming altcoins. As a result, around 13% of tracked crypto hedge funds closed down. A simple buy-and-hold strategy with Bitcoin would have been more profitable during this period.