The figure has increased significantly compared to last year, when it was 29%. The main impetus for this was regulatory transparency in the US and Asia, as well as the launch of cryptocurrency exchange-traded funds (ETFs). At the same time, in 2022, 37% of hedge funds invested in digital assets.
According to a new survey, 67% of respondents do not plan to increase the share of cryptocurrencies in their portfolio by the end of the year. Accordingly, 33% of hedge funds are planning to invest additional funds in digital assets.
Derivatives have become the main way of investing in cryptocurrencies for management companies – they are now used by 58% of hedge funds investing in digital assets. A year ago this figure was 38%. But such funds are moving away from spot trading – only 25% of hedge funds trade on the spot market, while in 2023 this figure reached 69%.
“The survey results show a steady recovery in confidence in cryptocurrencies over the past year. We are seeing an increase in regulatory transparency around the world, which is giving a significant increase in confidence in this asset class,” said James Delaney, Managing Director of Asset Regulation at AIMA.
As Edward Chin, co-founder of the investment firm Parataxis Capital Management, emphasized, the use of traditional strategies in the cryptocurrency market can provide a significant increase in investment returns.
At the same time, 76% of hedge funds that have not invested in cryptocurrencies do not plan to do so over the next three years. A year ago this figure was 54%.
Let us recall that, according to River, more than 50% of US hedge funds have invested in Bitcoin ETFs.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
