PwC and Elwood Management released a report examining cryptocurrency in hedge funds for the third year in a row. The data comes from the first quarter of 2021 and will be briefly discussed below. The Alternative Investment Management Association (AIMA) also contributed to the research. The full research can be found here.
The total assets of crypto hedge funds have increased from about $ 2 billion in 2019 to nearly $ 3.8 billion in 2020. Bitcoin (BTC) has by far the largest share of these funds at 92%. Ethereum (ETH) follows with 67%, followed by Litecoin (LTC) with 34%. Chainlink (LINK) and Polkadot (DOT) complete the top 5.
Of the “traditional” hedge funds studied, about 20% invest in crypto. Of the total assets they manage, about 3% is in digital assets. Traditional funds manage $ 180 billion in assets. Of the funds already investing in cryptocurrency, 86% indicated that they wanted to expand this before the end of 2021.
Henri Arslanian, PwC’s global crypto leader, said in an interview with Forkast.News. the following:
“This year, for the first time, we also covered traditional hedge funds in the report and what has been really remarkable is that according to the data, 46% of traditional hedge funds, which represent about $ 180 billion in assets, have invested in crypto or very soon. will do. I think that is certainly more than many people in the market expected. ”
The report also examined the biggest barriers to investing in cryptocurrency. Unclear regulations and the uncertainty that this entails was the main reason for 82%. Half of the funds that already own crypto also labeled this as risk.