News Digest:

The Global Crypto Hedge Fund Report highlights a growing shift toward cryptocurrency investments, driven by increased regulatory clarity and the launch of cryptocurrency exchange-traded funds (ETFs) in the US and Asia. According to the report, 47% of hedge funds traditionally focused on other asset classes now have crypto exposure, a notable increase from 29% in 2023 and 37% in 2022.

Among hedge funds already active in the crypto space, 67% plan to maintain their current level of capital, while the remainder aim to increase investments by the end of 2024. This trend reflects expanding confidence in digital assets, despite broader market volatility.

The survey, conducted in the second quarter of 2024—just after Bitcoin reached an all-time high in March—polled 100 hedge funds, with 42% focused on traditional assets and the remaining primarily involved in crypto. The results reveal a divergence in strategies: while some funds are diving deeper into digital assets, others remain on the sidelines, constrained by mandates or skepticism about the asset class.

As regulatory frameworks continue to evolve and the crypto market matures, the coming years will likely determine whether these cautious funds shift toward greater adoption or maintain their conservative stance.

End Notes

Source: https://www.hedgeweek.com/nearly-half-of-traditional-hedge-funds-now-have-crypto-exposure/