A global survey of chief financial officers has indicated that hedge funds could significantly increase their crypto holdings. According to an average figure based on their forecasts, the fund will hold more than 7% of assets in crypto within the next five years.
Hedge Fund CFOs Expect Massive Growth in Crypto Investments
Survey, 100. held between CFO Around the world, there are indications that hedge funds are clearly planning to expand their exposure to cryptocurrencies by 2026. Reuters described the election results as a major vote of confidence for the digital asset, which comes amid a recent market slump and tighter capital plans. Regulations.
Officials believe their fund will account for 7.2% of all assets in cryptocurrency five years from now, or about $312 billion based on estimates for the size of the industry, fund administrator Intertrust detailed. And while this is the average forecast of the sample, 17% of respondents shared high expectations, saying that hedge funds will likely manage more than 10% in crypto.
Exact data about the sector’s current crypto holdings is not yet available, but the report states that many big names in the industry have already committed some amount to the digital asset. The article went on to elaborate that the investment was driven by rising cryptocurrency prices over the past year and “the inefficiencies of the market they can arbitrate”.
Hedge fund survey indicates growing excitement about bitcoin
While most traditional asset managers remain skeptical about cryptocurrencies, mainly citing their high volatility and uncertain future, the hedge fund survey shows a growing enthusiasm. According to David Miller, executive director of Quilter Cheviot Investment Management, hedge funds are “well aware of not only the risks, but also the long-term potential of crypto assets”.
Those already investing in crypto include companies such as Man Group, which trades bitcoin futures through its AHL unit, and Renaissance Technologies, which announced last year that its Medallion Fund could also buy futures contracts. Reuters also reminds that hedge fund manager Paul Tudor Jones, Braven Howard, and Skybridge Capital Some funds have also invested in crypto.
Hedge funds manage an average of $7.2 billion in assets in the Intertrust survey. bitcoin price (B T c), the crypto with the largest market cap reached a record high of over $63,000 earlier this year, but has since fallen to around $40,000 per coin. Also, it is unclear how the upcoming regulations will affect the global crypto space and ultimately the valuation of most of the digital currencies that exist today.
What are your expectations regarding the future participation of hedge funds in the crypto market? Tell us in the comments section below.
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