New data shows that nearly half of traditional hedge funds are now involved with crypto assets. This shift comes as regulations become clearer.
According to a recent report from Bloomberg, a survey found that 47% of hedge funds in traditional markets have exposure to crypto assets. That’s a significant jump from 29% in 2023 and 37% in 2022.
This survey was conducted by the Alternative Investment Management Association (AIMA) and PricewaterhouseCooper (PwC). It also revealed that 67% of funds already exposed to crypto plan to keep their current level of investment. The rest are looking to buy even more.
James Delaney, managing director of asset management regulation at AIMA, noted that this year’s findings show a steady recovery in confidence. He emphasized that the growing regulatory clarity worldwide is boosting trust in this asset class.
However, not all hedge fund managers are ready to jump in. The survey found that 76% of those who haven’t invested in crypto say they’re unlikely to do so in the next three years. That’s up from 54% last year.
Additionally, 66% of traditional hedge funds said they do not plan to include Bitcoin (BTC) exchange-traded funds (ETFs) in their strategies.
This survey took place in March and included responses from 100 hedge funds, with 42% investing in traditional assets.