“So the actual hurdle would be alternative illiquid equity investments”

I disagree with you here. Anyone who is trying to find equity opportunities in Bitcoin companies, has generally speaking done their research, owns Bitcoin, and wants to support its development. If the equity opportunity doesn’t have the ability to hurdle Bitcoin, then why not own more Bitcoin? 

Yes perhaps you’re right from a fund management perspective, with existing funds under management, to compare illiquid 

But for raising a btc focused equity growth fund, you have to be able to beat Bitcoin 

Let’s say this is an opportunity / problem, how would you solve it?