A survey of 100 hedge fund Chief Financial Officers (CFOs) forecasts that hedge funds all around the world will be holding 7.2% of their assets in crypto within 5 years.
The results reflect an increasing vote of confidence in cryptocurrencies despite the increasing regulatory pressure and volatility the industry has experienced over the past months.
Hedge Funds are Going for Crypto
The survey estimates that the equivalent value of 7.2% of the assets would represent around $312 billion across the industry.
17% of the CFO’s surveyed said they expect to have more than 10% of their assets in cryptocurrency, which experts estimate could result in other hedge funds increasing their crypto holdings.
While the number of hedge funds actively investing in cryptocurrency at this time is limited to those with high-risk tolerance, the increasing long-term potential has proven to be too attractive for hedge funds to ignore.
The survey, which was conducted by Intertrust, showed that all of the executives interviewed hold cryptocurrency accounting for at least 1% of their portfolios’ worth.
Those executives worked for hedge funds with an average of $7.2 billion in assets across North America, Europe, and the United Kingdom.
A surprising finding was that while North American funds expect an exposure of 10.6% on average by 2026, funds in the UK and Europe expect an average of 6.8%.
This is despite the uncertainty the crypto industry has experienced over its future regulation in the world’s biggest economy.
Bitwise Raises $70 Million in Funding
With Institutional Investors continuing to show an interest in crypto, projects involved with crypto continue to find new sources of funding to launch and maintain their platforms.
This was the case of the crypto asset management company Bitwise, which raised $70 million in Series B funding.
With more than 30 investors from Wall Street and Silicon Valley participating in the funding round, this news shows that institutional investors are not…