- The hedge fund world is finding the siren song of memecoins irresistible, as evidenced by the case of Dogwifhat (WIF) token.
- Newport Beach, California-based Stratos launched a liquid fund that held the Dogwifhat token, whose price appreciated by more than 300 times, helping the fund post a 137% return in the first quarter.
- Memecoins like Dogwifhat are attracting the attention of crypto hedge funds, marking what is seen as the first cycle where funds are jumping into meme-based cryptocurrencies.
Cryptocurrency-focused hedge funds are finding it hard to resist the meteoric returns offered by memecoins like Dogwifhat (WIF). This represents the first cycle where hedge funds are actively investing in meme-inspired cryptocurrencies.
Dogwifhat’s Rally Attracts Crypto Funds
The recent rally of Dogwifhat, featuring a dog mascot in a beanie, has caught the attention of crypto hedge funds. When the token surged over 300x in December 2021, Newport Beach-based Stratos launched a fund holding Dogwifhat.
The fund gained 137% in Q1 2022, more than double the crypto market overall, as Dogwifhat hit its peak. While Dogwifhat has fallen 40% from its record, its massive rally shows the potential in memecoins.
Funds Jumping Into Memecoins
Crypto hedge funds are succumbing to the huge returns offered by memecoins this cycle. For instance, when Dogwifhat exploded in December 2021, Stratos quickly launched a liquid fund holding the token.
As Dogwifhat rallied over 300x, Stratos’ fund gained 137% in Q1 2022 – over twice the broader crypto market. Though Dogwifhat has dropped 40% from its peak, its meteoric rise indicates the temptation for funds to jump into memecoins.
Conclusion
The stratospheric gains of memecoins like Dogwifhat are attracting crypto hedge funds in the current market cycle. As funds like Stratos show, the returns from riding memecoin rallies can easily double broader crypto market performance. While risky, memecoin mania is presenting an enticing opportunity for crypto hedge funds.
