It has been reported that hedge funds are showing an increased faith inc crypto. Check out the latest reports about this below.
Increased interest in crypto
PwC released a report on Wednesday stating that although the percentage of traditional hedge funds investing in cryptocurrency decreased from 37% to 29% in 2023, confidence in the value and long-term sustainability of crypto assets remains strong.
The report found that traditional hedge funds with current cryptocurrency investments plan to maintain or increase their exposure, despite ongoing regulatory uncertainty and market volatility. Over the past year, the average allocation to cryptocurrency by traditional hedge funds has increased from 4% to 7%.
However, slightly over half of traditional funds surveyed stated that they are unlikely to invest in cryptocurrency over the next three years.
The report which has been conducted with the Alternative Investment Management Association and CoinShares, surveyed both traditional hedge funds and crypto hedge funds. Of that second group, 93% expect the overall crypto market capitalization to be higher at the end of the year.
“Despite market volatility, a fall in digital asset prices and the collapse of a number of crypto businesses, investment in crypto-assets is expected to remain strong in 2023,” John Garvey, a global financial services leader at PwC U.S., said in a statement.
“Traditional hedge funds, committed to the market in the longer term, are not only increasing their crypto-assets under management, but also maintaining – if not increasing – the amount of capital deployed in the ecosystem.”
According to Garvey, a lot of investment funds are being affected by regulatory uncertainty. In a survey, more than half of the respondents said that they would increase their investments once there is more transparency, regulatory certainty, and better risk management in place.
Stay tuned for more news from the crypto space and make sire to check out the markets ss well.
