With each passing day hedge funds seem to be more and more into crypto.
Hedge funds are planning on increasing their total crypto allocation within the next 5 years according to a new survey from Financial Times.
The Financial Times survey revealed: We may see up to a 7% increase in many major hedge fund’s total portfolio holdings in crypto currencies by the year 2026.
Findings from the survey seem to suggest that major players in the market are embracing the digital asset trend, as governments around the world are dipping their toes in the water to various degrees.
Could this be a bullish outlook on the tech and proven use cases behind the assets, or purely a hedge, as confidence in The U.S. Dollar has been on the decline?
I have little doubt that it’s a little of both.
Take a look at these revealing findings:
Survey: 1 in 6 Hedge Funds Plan to Invest More Than 10% in Crypto
— Fred Thiel (@fgthiel) June 16, 2021
A recent Intertrust survey found that hedge fund managers expect to allocate 7.2% of their portfolios to cryptocurrencies by 2026.https://t.co/VqaftzPvki
— Crypto Briefing (@Crypto_Briefing) June 15, 2021
Crypto Potato offered us some more details from the survey:
While some institutions contemplate on whether or not they should buy or increase their crypto holdings now, others have already done so.
Perhaps it all started with the billionaire hedge fund manager – Paul Tudor Jones III. He was among the first to openly praise BTC after the COVID-19 pandemic because he considered it a proper safe haven instrument against the rising inflation in the US.
He allocated up to 3% of his portfolio in BTC at the time but said he wants to have 5% in the primary cryptocurrency just recently. Stan Druckenmiller, another legend of the legacy financial markets, echoed his words shortly after.
Anthony Scaramucci, the founder and CEO of SkyBridge Capital, was next. He and his organization came on board in late 2020 through a Bitcoin Fund with an initial multi-million dollar investment.
Hedge funds worldwide are looking to significantly increase their exposure to crypto assets in the near term.
US-based funds are most #bullish, expecting to up their allocation to an average of 10.6% within 5 years.
— Independent Reserve (@indepreserve) June 16, 2021
According to a November 2020 forecast by data analytics company Preqin, assets under management held by hedge funds will reach $4.28 trillion in 2025, up 19.6% from $3.58 trillion at the end of 2020.
While the exact amount invested by traditional hedge funds is unclear, several high-profile investors have already allocated a portion of their portfolios to digital assets. These include Brevan Howard Asset Management and Rothschild Investment, who together hold over $11 billion in total assets under management.
Another prominent figure on Wall Street to jump on the crypto bandwagon is Paul Tudor Jones. The billionaire hedge fund manager bought his first Bitcoin last year and recently said that he wants to diversify his investment portfolio with 5% of BTC.
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