A new survey found that hedge funds could hold up to 7% of their assets in cryptocurrencies within the next five years.
A survey of 100 finance chiefs of hedge funds worldwide found that they are ready to hold over 7% of their assets in cryptocurrencies over the next five years. Despite the massive drop in prices in recent weeks, hedge funds have shown great confidence in digital currencies.
According to the Financial Times, the survey conducted by fund manager Intertrust showed that hedge fund executives expect to hold an average of 7.2% of their assets in cryptocurrencies by 2026. This would result in the cryptocurrency market growing over $ 300 billion over the next five years.
According to the survey, 17% of respondents expect to hold more than 10% of their total assets in cryptocurrencies like Bitcoin. The investment would generate tremendous market acceptance by hedge funds.
Although the actual number of cryptocurrency exposure hedge funds is currently unknown, some of them have shown interest in investing in Bitcoin and other cryptocurrencies. Some of the hedge funds have invested directly in cryptocurrencies or have been exposed through derivative products such as bitcoin futures and options.
The founders of some of the leading hedge funds have also taken an interest in cryptocurrencies. Alan Howard, the founder of Brevan Howard, has invested in numerous cryptocurrency projects both on an individual level and through his hedge fund. Another major investor in cryptocurrencies is hedge fund manager Paul Tudor Jones. He recently signaled his willingness to invest up to 5% of his portfolio in the leading cryptocurrency.
Several hedge funds, both in the US and abroad, are already making profits on their cryptocurrency investments.