Forex in this article
• Increasing interest in digital assets from hedge fund managers
• Crypto hedge funds primarily invest in Bitcoin, Ethereum and Solana
• Regulatory uncertainty as the main reason for not investing
According to a survey conducted for the fourth time by management consulting firm PwC, AIMA (Alternative Investment Management Association), Elwood Technologies and asset manager CoinShares, interest in cryptocurrencies is unbroken.
For the first quarter of 2022, the authors record a significant increase in crypto investors among hedge fund managers: in the current survey, 38 percent of respondents indicate that they are already invested in crypto, compared to 21 percent in the same quarter of the previous year.
crypto hedge fund
According to the survey data, about half of the current 300+ crypto hedge funds were launched in the last three years. A correlation can be seen between the Bitcoin price and the number of newly launched funds, with activities involving the Bitcoin price increasing especially in 2021. The main investments are in Bitcoin, Ethereum and Solana. Investor strategies are categorized into the various categories, with market neutral strategies accounting for nearly a third of all crypto hedge fund strategies. Overall, the authors state that crypto hedge fund trading strategies are becoming more mature and returns are healthy. “The increasing sophistication of crypto specialty funds can be seen in management experience, penchant for higher quality assets and the interplay between digital assets, on-chain/off-chain return vehicles and traditional derivatives markets. Hoping for further regulatory clarity.” specialists and traditional hedge funds are optimistic about the long-term future of digital assets and their value,” the survey reads.
Increasing investment volume
Both the number of traditional hedge fund managers investing in cryptocurrencies and the total assets under management in crypto funds have increased significantly compared to the previous year. However, for most hedge fund managers, crypto investments represent only a small part of the investment volume.
According to the authors of the survey, 57 percent of the respondents invest less than one percent of the total volume in digital assets, 39 percent of the survey participants are invested with two to five percent. But here too, the authors registered an increase and draw a positive outlook, because 67 percent want to invest more in the future. However, this is down from last year, when 86 percent of respondents said they were investing more in cyber currency.
The answers of managers who have not yet invested in cryptocurrencies are particularly interesting: 16 percent indicate that they already have concrete investment plans for the current year, 31 percent of respondents show a wait-and-see attitude, but emphasize that they are interested. in investments. A total of 41 percent of the managers surveyed stated that they did not want to invest in Bitcoin, Ethereum and Co. in the next three years. In the previous year, it was still 57 percent of the respondents.
Against Bitcoin, Ethereum, Ripple & Co: Reasons to Reject Digital Assets
The lack of regulation and tax uncertainty are cited by 83 percent of respondents as the main reasons for not investing in cryptocurrencies. 79 percent fear reputational risks or negative reactions from their clients. 77 percent indicate that they have not yet invested due to a lack of infrastructure and service providers
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claim for recourse.
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