Near to one inch three – or 29% – of hedge funds that aren’t yet committed to digital assets appear at first sight searching to take a position or have been in late-stage planning investments within the space, a brand new survey by talking to giant PwC has revealed.
Laptop computer was conducted within the first quarter of 2022 on the sample of 77 specialist crypto hedge fund managers, together with Elwood Asset Management (now part of CoinShares).
Based on the survey results, printed in PwC’s Global Crypto Hedge Fund Report for 2022, the proportion of hedge funds which are searching towards the crypto marketplace for their future investments has risen from 26% this past year to 29% this season. A lot of the funds searching for the crypto market stated they are in “late-stage planning” for that investment, laptop computer found.
Simultaneously, laptop computer also discovered that 41% of uninvested hedge money is unlikely to purchase the following 3 years, while 31% stated they’re “curious” about digital assets, but choose to wait for a sell to mature more.
One of the funds which were not invested, the very best reason behind remaining from crypto was “regulatory and tax uncertainty,” the PwC report stated. Which was adopted by “client reaction” or “reputational risk” because the second-greatest concern for that crypto-skeptical funds.
One out of three funds already invested
Meanwhile, the report stated that one out of three surveyed hedge funds has committed to digital assets. The amount expires considerably from last year’s report when only 1 in 5 funds stated they’d investments in crypto.
One of the funds which have already invested, typically 4% of assets under management are actually committed to crypto, a rise from threePercent last year. Still, for that funds using more than USD 5bn as a whole assets under management, the allocation to crypto was smaller sized, wonderful these funds allocating under 1%, laptop computer found.
Requested about which digital assets they purchase, two-thirds from the respondents who have been invested on the market pointed out either bitcoin (BTC) or ethereum (ETH) among their investments, while only 29% pointed out other cryptoassets for auction on a centralized exchange.
Simultaneously, 19% of hedge funds mixed up in crypto market stated they have contact with non-fungible tokens (NFTs).
67% of funds searching to improve exposure
Particularly, two-thirds from the funds which are already committed to the crypto market stated they intend to improve their contact with the nascent asset class this season. The figure marks a decrease from last year’s survey when 86% from the funds stated exactly the same.
From the funds searching to allocate more capital to digital assets, 57% presently have under 1% of the assets under management allotted to those assets. Another from the respondents searching for additional exposure have between 2% and 5% of the assets under management already allotted to crypto, laptop computer found.
Fund managers remain bullish
Lastly, laptop computer also says by April 2022 when responses received, most hedge fund managers remained as bullish around the cost of bitcoin.
All respondents predicted the bitcoin cost would finish the entire year above USD 40,000, that was the present cost round the closure from the survey. The median cost conjecture with this year ended at USD 75,000, while around 5% of respondents stated that bitcoin would finish the entire year above USD 100,000.
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Find out more:
– Just 18% of Respondents Don’t Expect Bitcoin to get Legal Tender in three years – Survey
– Accenture Sees Strong Interest in Digital Assets Among Asian Investors, but Hesitancy Among Advisory Firms
– DAOs, Token Holders Could Face New Tax Liabilities, PwC Report Warns
– NFTs Will End Up ‘Critical Pieces’ of Sports Industry – PwC
– Global Insurers Start Purchasing Crypto Among Risk-On Investment Approach
– 40% of Surveyed Lower-earnings Individuals Desire to use Bitcoin – Not to earn money
