Bitcoin News and Finance
Hedge Funds Aim for $300 Billion in Crypto Assets Within 5 Years, Survey Shows Skip to main content

Hedge Funds Aim for $300 Billion in Crypto Assets Within 5 Years, Survey Shows

Hedge Funds Aim for $300 Billion in Crypto Assets Within 5 Years, Survey Shows

Hedge funds are likely to significantly increase their crypto holdings, a global poll of chief financial officers has indicated. According to an average figure based on their forecasts, the funds will keep more than 7% of assets in cryptocurrency within the next five years.

Hedge Fund CFOs Expect Sizable Increase in Crypto Investments

The survey, conducted among 100 CFOs around the world, signals that the hedge funds are planning to markedly expand their exposure to cryptocurrencies by 2026. Reuters described the poll results as a major vote of confidence for digital assets, one that comes after the recent market decline and amid plans for stricter capital regulations.

Hedge Funds Aim for $300 Billion in Crypto Assets Within 5 Years, Survey Shows

The executives believe their funds will hold 7.2% of all assets in cryptocurrency five years from now, or around $312 billion based on estimates for the size of the industry, fund administrator Intertrust detailed. And while this is the average forecast of the sample, 17% of the respondents shared higher expectations, stating that the hedge funds will probably manage more than 10% in crypto.

Precise data about the sector’s current crypto holdings is not available right now but the report notes that several big names in the industry have already committed certain amounts to digital assets. Investments have been motivated by the rising cryptocurrency prices in the past year and “market inefficiencies that they can arbitrage,” the article elaborates.

Hedge Funds Survey Indicates Growing Enthusiasm About Bitcoin

While most traditional asset managers remain skeptical about cryptocurrencies, mainly citing their high volatility and uncertain future, the hedge fund survey shows a growing enthusiasm. According to David Miller, Executive Director at Quilter Cheviot Investment Management, hedge funds “are well aware not only of the risks but also the long-term potential” of crypto assets.

Hedge Funds Aim for $300 Billion in Crypto Assets Within 5 Years, Survey Shows

Among those that have already invested in crypto includes firms like Man Group which trades bitcoin futures through its AHL unit and Renaissance Technologies which announced last year that its Medallion fund could buy futures contracts as well. Reuters also reminds that hedge fund manager Paul Tudor Jones, Brevan Howard, and Skybridge Capital have invested some funds into crypto too.

The hedge funds in the Intertrust survey manage an average of $7.2 billion in assets. The price of bitcoin (BTC), the crypto with the largest market cap, rose to a record high of over $63,000 earlier this year but has since dropped to around $40,000 per coin. At the same time, it remains unclear how upcoming regulations will affect the global crypto space and ultimately the valuation of most digital currencies that exist today.

What are your expectations regarding the future involvement of hedge funds in the crypto market? Tell us in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory