Every fifth hedge fund already invests in cryptocurrencies, reports PwC

DeFi tool ‘Bogged Finance’ sees $3 million hack, prices plunge 98%

Crypto-centered hedge resources have doubled their assets less than administration in 2020, researchers at PricewaterhouseCoopers exposed.

· 2 min read through

Secure your wealth: Invest in a Crypto Index Fund

All around 21% of standard hedge money in the globe have already invested in cryptocurrencies—while crypto-concentrated kinds doubled their belongings less than administration (AUM) above the system of 2020, claims a new report by specialist services community PricewaterhouseCoopers (PwC).


“We estimate that the overall assets beneath management (AuM) of crypto hedge funds globally enhanced to just about US$3.8 billion in 2020 from US$2 billion the prior year. The percentage of crypto hedge resources with AuM in excess of US$20 million increased in 2020 from 35% to 46%,” the agency noted.

Hedge funds double down on crypto

For each PwC’s 3rd once-a-year “World Crypto Hedge Fund Report,” Bitcoin is the most preferred asset as 92% of crypto funds are buying and selling it. The coin is followed by Ethereum (67% of cash traded it), Litecoin (34%), Chainlink (30%), Polkadot (28%), and Aave (27%).

In the meantime, the huge the greater part of crypto hedge fund investors are large-web-well worth individuals (54%) and loved ones places of work (30%).

“The median ticket size is US$.4 million, though the ordinary ticket size is US$1.1 million. Over 50 percent of crypto hedge cash have regular ticket measurements of US$.5 million and under. Crypto hedge funds have a median of 23 independent traders,” the report mentioned.

At the same time, each fifth “traditional” hedge fund—or around 21%—is also investing in cryptocurrencies today. On average, this sort of companies have allotted about 3% of their AUM in digital belongings, but approximately all of them (85%) are previously arranging to buy extra crypto by the conclusion of 2021.

Worries of embracing crypto

Additional, 26% of hedge fund professionals who are not investing in crypto described that they are “in late-phase organizing to spend or searching to invest” in electronic assets. Nonetheless, 82% of them also argued that regulatory uncertainty is a single of the significant obstructions that stand in the way of embracing crypto.

In the meantime, 50% of cash that presently devote in electronic assets have similarly mentioned that crypto offers “a big obstacle,” citing higher customer response/reputational chance (77%) as properly as the fact that cryptocurrencies are presently “outside the scope of existing financial investment mandates” (68%). Just about two-thirds of PwC’s respondents also acknowledged that they “don’t have enough information of electronic belongings.”

But if the aforementioned limitations to entry were taken off, 64% of hedge funds “would undoubtedly get started/accelerate their involvement/investment decision or likely modify their strategy and turn into extra involved” in cryptocurrencies, the report concluded.

Get an edge on the cryptoasset marketplace

Accessibility more crypto insights and context in each write-up as a paid member of CryptoSlate Edge.

On-chain investigation

Rate snapshots

A lot more context

Sign up for now for $19/thirty day period Investigate all benefits

Secure your wealth: Invest in a Crypto Index Fund

Like what you see? Subscribe for updates.

Supply connection

Blockonomics is a decentralized and permissionless bitcoin payment solution

Be the first to comment

Leave a Reply

Your email address will not be published.