30s Summary

Around 47% of traditional hedge funds are investing in cryptocurrencies, according to a survey by the Alternative Investment Management Association and PwC. James Delaney of AIMA attributes this rise to clearer regulatory rules, boosting confidence among hedge funds. These funds plan to maintain or increase their investment level, with most trading both derivatives and tokens. However, 76% of hedge funds have no plans to enter the crypto market, and two-thirds don’t see Bitcoin ETFs fitting their digital strategies.

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With clearer rules around Bitcoin and Ether exchange-traded funds, nearly half of the usual hedge funds have started dabbling in cryptocurrencies. According to a survey by the Alternative Investment Management Association and PwC, 47% of traditional hedge fund managers have a stake in the digital world. Back in 2023, it was just 29% and 37% the year before that.

James Delaney, from AIMA, highlighted how clearer rules from regulators have given hedge funds more confidence in cryptocurrencies. This has led to a boost in crypto trading. Most hedge funds that are already messing around with cryptocurrencies have no plans to bow out. A solid 67% have plans to keep their investment level steady, while almost a third are looking to up the ante.

These funds have been using a mix of strategies to get their piece of the crypto pie, trading both derivatives and tokens. But despite this trend, not all hedge funds are jumping on board. In fact, a whopping 76% have no plans to dip their toes into the crypto world in the next few years.

The same report noted that two-thirds of traditional funds don’t see Bitcoin ETFs fitting into their digital strategies. This aligns with a statement from early October by investment officer Quinn Thompson, who reckoned buying Bitcoin at its then-price of $61,000 was a no-brainer. Based on its movement from when Bitcoin peaked at $73,700 in March, Thompson predicted prices would soon rise again.

Source: Cointelegraph