E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Apple AirPods Pro 2 likely to come with USB Type-C charging case

July 4, 2022

Fighting All That Can Go Wrong With Resin

July 4, 2022

NFT, BTC Scams Featured on British Army’s Compromised Twitter, YouTube Accounts

July 4, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»Traditional Hedge Funds Not Deterred by Crypto Market Downturn and Volatility
Crypto

Traditional Hedge Funds Not Deterred by Crypto Market Downturn and Volatility

Paul EasterBy Paul EasterJune 11, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email



While the general cryptocurrency market has been in the red for most of 2022, recent reports reveal that more traditional hedge funds are still investing in digital assets, with the number of such entities estimated to reach 300.

More Traditional Hedge Funds Getting Into Crypto

According to the 4th Annual Global Crypto Hedge Fund report by PricewaterhouseCooper (PwC), 89 hedge funds were involved in a survey conducted in Q1 2022.

The research revealed that 38% of traditional hedge funds were already investing in cryptocurrency, a jump from 21% recorded a year ago. Also, two-thirds of the entities surveyed currently investing in digital assets are looking to increase their allocation by the end of 2022.

Last April, British hedge fund giant Brevan Howard planned to invest 1.5% of its capital into various cryptocurrencies. A previous survey from June 2021 revealed that nearly 100% of hedge funds intend to allocate 7.8% (on average) of their portfolios into crypto by 2026.

Traditional hedge fund managers not involved in such investment reduced to 62%, compared to 79% in the previous year. Meanwhile, 29% of those not purchasing digital assets are either making plans to invest or are at the late stage of their investment plans.

On the other hand, the PwC report noted the estimated number of specialist crypto hedge funds is 300 globally, adding that new entities have been created at an accelerated rate in the past two years.

The most-traded digital asset for crypto hedge funds was Bitcoin, with Ether coming second, followed by Solana, Polkadot, Terra, and Avalanche.

Regulatory Uncertainty a Major Hindrance for Crypto Investment

Although more traditional hedge funds are getting into crypto, most still exercise caution. According to the survey, 57% allocated less than one percent of their total assets under management (AUM) to cryptocurrency.

Also, 41% of asset managers not investing in digital assets said they are not likely to gain such exposure in the next three years. Another 31% are curious about cryptocurrency but prefer to wait till the market reaches robust maturation.

Meanwhile, regulatory uncertainty was the biggest barrier for respondents not involved in crypto investment, while hedge funds with such exposure said that the absence of tax and regulatory clarity was a major challenge.

Global Financial Services Leader, PwC United States, John Garvey noted that although the crypto market came with risks and volatility, that has not hindered the traditional hedge funds from making crypto investments.

“The recent collapse of Terra vividly demonstrated the potential risks in digital assets.  There will continue to be volatility, but the market is maturing and with that is coming not only many more crypto-focused hedge funds and higher AuM, but also more traditional funds entering the crypto space.”

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



Source link

Paul Easter

Related Posts

NFT, BTC Scams Featured on British Army’s Compromised Twitter, YouTube Accounts

By Paul EasterJuly 4, 2022

Ethereum Name Service Sells for Second-Highest Price Ever of 300 ETH

By Paul EasterJuly 4, 2022

ETH Price Analysis: Ethereum Recovers 8% in 4 Days, Here’s The Next Bullish Target

By Paul EasterJuly 4, 2022

Circle CEO Refutes Rumor of USDC Collapse Due to Exposure to Troubled Firms

By Paul EasterJuly 4, 2022
Add A Comment

Comments are closed.

Our Picks

Apple AirPods Pro 2 likely to come with USB Type-C charging case

By Paul EasterJuly 4, 2022

Fighting All That Can Go Wrong With Resin

By Paul EasterJuly 4, 2022

NFT, BTC Scams Featured on British Army’s Compromised Twitter, YouTube Accounts

By Paul EasterJuly 4, 2022
Recent Posts
  • Apple AirPods Pro 2 likely to come with USB Type-C charging case July 4, 2022
  • Fighting All That Can Go Wrong With Resin July 4, 2022
  • NFT, BTC Scams Featured on British Army’s Compromised Twitter, YouTube Accounts July 4, 2022
  • Akasa Air showcases crew uniform; conducts proving flight test July 4, 2022
  • Air India alerts people about hoax communication; link offering Rs 6000, fake, says company July 4, 2022
  • Will recession hit Indian shores in six months? Zee Business Managing Editor Anil Singhvi decodes July 4, 2022
  • Ethereum Name Service Sells for Second-Highest Price Ever of 300 ETH July 4, 2022
Archives
  • July 2022
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.