Interest in crypto by hedge fund is increasing despite bearish trend.
Traditional hedge funds are slowly embracing cryptocurrency investments but are keeping their exposure limited as the market continues to mature and also considering the current bearish trend. This is according to new research from one of the big four accounting firms, PricewaterhouseCoopers, popularly known as PwC.
In its 4th Annual Global Crypto Hedge Fund Report 2022, PwC said roughly one-third of traditional hedge funds surveyed are already investing in digital assets such as Bitcoin (BTC). So-called “multi-strategy” hedge funds were most likely to invest, followed by macro strategy and equity strategy firms, respectively.
Of the hedge funds currently invested in the crypto space, 57% have allocated less than 1% of their total assets under management. Two-thirds of the firms currently invested plan to increase their exposure by the end of 2022.