Nearly half of traditional hedge funds have begun investing in crypto assets, according to new data. This increase occurred as regulations became clearer. In particular, new ETFs, ETPs and trusts have opened safer investment channels.
Crypto Investments of Hedge Funds
According to a new report published by Bloomberg, the latest survey revealed that 47% of hedge funds have exposure to crypto assets. This rate was 29% in 2023 and 37% in 2022.
According to the survey, 67% of hedge funds already exposed to crypto assets plan to maintain their current level of investment, while the rest are considering purchasing more.
“Findings from this year’s report show that confidence has been steadily recovering since last year. “Regulatory clarity starting around the world is definitely increasing confidence in the asset class.” – James Delaney, AIMA Asset Management Regulatory Directorate
However, 76% of hedge fund managers surveyed who have not invested stated that they do not plan to make such investments in the next three years. This rate was 54% in 2023.
A Look at Bitcoin ETFs
66% of traditional hedge funds surveyed are bullish on Bitcoin (BTC) 
$60,844 stated that they do not plan to include exchange-traded funds in their strategies. The survey was conducted in March of the year and questioned 100 hedge funds. 42% of these funds invest in traditional assets.
Aside from the billions of dollars of volume in the ETF channel, corporate companies have the opportunity to diversify their reserves with cryptocurrencies, thanks to services such as Coinbase Prime. Especially in the environment where monetary expansion has started, there are many people who see the best profit in crypto as they expect positive fluctuations in risk markets in the next year.
As a result, traditional hedge funds’ interest in crypto assets appears to be increasing as regulatory uncertainties decrease. This trend may play a significant role in shaping financial markets’ perception of digital assets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
