A brand new survey of 100 chief monetary officers at hedge funds worldwide has indicated that the sector is planning a major enhance in its publicity to crypto assets in the close to time period.
The survey, performed by Intertrust, suggests that if the respondents’ forecasts had been broadly mirrored throughout the sector, assets in crypto held by world hedge funds may hit $312 billion. United States-based funds had been most bullish concerning the new asset class, anticipating to increase their portfolio publicity to crypto to 10.6% on common inside five years.
Their European Union- and United Kingdom-based counterparts gave a barely extra modest determine, though nonetheless vital: 6.8% on common. Intertrust’s pattern included chief monetary officers of funds that every handle a median of $7.2 billion in assets. The CFOs themselves personally anticipated to have a minimal of 1% of their portfolios in crypto.
Excessive-profile hedge fund managers equivalent to Paul Tudor Jones have been vocal advocates of Bitcoin (BTC) amid considerations about inflationary tendencies in the financial system. SkyBridge Capital CEO Anthony Scaramucci takes an analogous view of Bitcoin’s potential as a retailer of worth, contemplating it superior to gold.
Associated: Scaramucci’s SkyBridge BTC fund launches with $25-million funding
One other massive title in the sector that’s backing cryptocurrency is Alan Howard, co-founder of main asset supervisor Brevan Howard. Simply this week, Howard invested in two digital asset startups following his earlier funding in a digital asset custody companies supplier created by Nomura in partnership with Ledger and CoinShares. He additionally owns a 25% stake with One River Digital Asset Administration. There have additionally been stories of Brevan Howard’s plans to instantly make investments in crypto.
Apart from conventional hedge funds’ growing confidence in the asset class, there are additionally a quantity of makes an attempt to launch new crypto funds in the hope of replicating the successes of Bitwise and Grayscale.