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- Crypto assets exposure being seeked by several Hedge Fund managers
- Alternative fund managers are steadily taking a stable place in the portfolios of investors with digital currency being present
- Although the real involvement of hedge funds with crypto has not been as big as with other non-regulated assets, they are commencing to carve a niche in the zone
Crypto market has been soaring and attracted several institutional and individual investors. EY Global, one of the big four consulting and auditing firms in the world, has recently conducted a survey entitled “2021 EY Global Alternative Fund Survey”. According to the survey, one of the four hedge funds are expecting to surge their cryptocurrency exposure for the next year. Indeed, alternative fund managers are steadily taking a stable place in the portfolios of investors with digital currency being present. However, such funds are taking measures in a small way.
Hedge Funds strives crypto exposure
According to the 2021 Global Alternative Fund Survey, one of the big four Hedge Fund managers shows the performance and popularity of alternative fund managers among investors during the year. Moreover, it has been observed that the firms are one of the most open platforms to include crypto assets in their structures. Notably, one in four fund managers is exploring to increase their exposure to digital currency in the next year.
Meanwhile, it has been noted that due to the global COVID-19 pandemic, investors had to go through an interesting year with a plethora of challenges. Investors were navigating through the scenario and gave a big opportunity to alternative fund managers. Still, crypto assets are not popular with a lion’s share of these hedge funds currently. In contrast, with just one in ten reporting having exposure to these assets, showing there is room for growth.
However, these fund managers had an incredible performance. It is also noteworthy that 51% of the investors surveyed reported having skyrocketing value delivered by these alternative firms, which met or exceeded their expectations.
Cryptocurrency as an alternative investment
Amid the global pandemic, crypto assets have emerged as a significant asset class. The digital currency industry has made firms and fund managers turn their gaze to it as relatively profitable products in today’s convoluted market. Although the real involvement of these hedge funds with virtual assets has not been as big as with other non-regulated assets, they are commencing to carve a niche in the zone.
As investors seek to occupy new markets with new strategies, the growth has been achieved in the face of an unstable current situation when it comes to traditional investments.
2021 has helped the industry to build momentum
EY Global’s study is based on conversations involving 210 managers and 54 investors. The research offers a glimpse on the future of alternative investments and how crypto might be a big part of it. Natalie Deak Jaros, co-leader of the EY Global, the survey underscored the adaptability of the digital currency industry, and the vital transformations that managers and investors are partnering to affect.
