Traditionally, hedge funds are measured on their performance over short, discrete periods of time. Months, quarters and years. This makes sense for established markets such as stocks. Price discovery is immediate, one can look up the price of Apple or Netflix pretty quickly. There is evidence that many crypto funds launched with a less-than-ideal structure: prominent crypto hedge funds are now launching venture funds. Some are doing this while blocking investors from pulling capital from the original hedge funds.
In addition, several funds are now using something called side pockets. A mechanism to make long-term, illiquid investments, side pockets cannot be properly valued by a market because there generally isn't one. Many funds invest in project tokens or take equity stakes in crypto companies. However, these are investments in assets that cannot be valued precisely.
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