đ¨ 50% of Traditional Hedge Funds Now Investing in Crypto đ¨
The crypto landscape is evolving fast, and now roughly half of traditional hedge funds have taken the plunge into digital assets. According to a new report by the Alternative Investment Management Association and PwC, the surge in crypto adoption among hedge funds is driven by regulatory clarity in the U.S. and Asia, along with the launch of the Bitcoin spot ETF.
Key insights from the report:
33% of funds plan to increase their crypto holdings by the end of Q4 2024.
67% of investors intend to hold steady with their current positions.
58% of funds have shifted from just spot trading tokens to adopting more diverse strategies, including crypto derivatives.
Crypto derivatives are up 38% in 2024, while spot trading surged by 25%, showing how hedge funds are evolving their approach.
But, not all are rushing in. Two-thirds of mainstream hedge funds still avoid Bitcoin ETFs in their strategies, and regulatory uncertainty remains the biggest hurdle. Despite that, 12% of digital asset-focused hedge funds are already exploring tokenized assets.
Regulatory challenges still loom The U.S. SEC has been aggressive, slapping crypto firms with $4.7 billion in enforcement actions in 2024 aloneâ3,000% more than last year. However, countries like Thailand are now opening doors for mutual and private funds to invest in crypto products, providing a glimpse of hope for wider adoption.
Bottom line: As hedge funds navigate the regulatory waters, their growing interest in digital assets is undeniable. Are you ready to see how this impacts the future of crypto investments?
