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- Cryptocurrency market has attracted hedge funds globally through its performance
- Global hedge funds manager are planning to shift a portion of their managed funds to crypto
- Hedge funds managers are bullish on Bitcoin as their assets in crypto could hit $35 billion iver coming five years
Cryptocurrency market has attracted several fund managers since last year. Recently, Intertrust conducted a survey of 100 chief financial officers at hedge funds globally. Following the results it was observed that the entire sector is planning to increase its exposure to crypto investment. The significant increase will be witnessed in the short term as per the hedge fund CFOs. Notably, North American hedge funds are leading in the list with plans to shift more than 10.6% assets to cryptocurrency.
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Cryptocurrency investment is about to surge
The recent survey of Intertrust suggested that the United States hedge funds are at the vanguard of cryptocurrency-curious investors. On the other hand, Europe and the United Kingdom’s hedge funds are also near the American ones.
The American hedge funds managers have plans to shift more than 10.6% of their assets under management (AUM) in cryptocurrency. The United Kingdom and European hedge funds are planning to expand more than 6.8% of their AUM in digital assets. Indeed, the funds will be shifting over the upcoming five years.
Global hedge funds are bullish against crypto
Among the hedge funds from different countries, we observed that American funds were most bullish against the emerging asset class. Following the scenario only the fund managers planned to raise their digital holdings to near 10.6%.
After the North American hedge funds, a more modest figure was observed by Europe and the United Kingdom-based funds. The survey also revealed that each of the financial officers are currently managing approximately more than $7.2 billion worth assets.
How much could the funds invest in cryptos?
In the survey, the CFOs revealed that each of them are personally holding a minimum of 1% of their personal assets in cryptocurrency. The respondent’s forecasts were widely mirrored across the crypto industry. Notably, the survey indicates that all the hedge fund’s assets held in crypto could hit the level of $315 billion. Undoubtedly, the surge in the fund manager’s exposure to the cryptocurrency industry seems quite significant.
high profiled hedge funds are Bitcoin advocates
Amid the global pandemic, several globally were concerned regarding inflationary tendencies in the economy. At the time several institutions like MicroStrategy and Square Inc found the world’s most popular crypto asset as a store of value.
Since then, several high profiled hedge fund managers are advocating Bitcoin. The list of such managers also includes Paul Tudor Jones. Moreover, SkyBridge’s CEO, Anthony Scaramucci believes that BTC’s potential as a store of value considers it superior to gold. Indeed, the scenario indicates that hedge funds are gaining confidence in the asset class.
