98 per cent of hedge fund managers plan to put investment bets on crypto
Hedge funds are increasingly betting on crypto, as an ‘overwhelming majority’ of senior staff eye digital asset investments over the next five years, according to a new report.
The report by Intertrust, which surveyed 100 senior-level professionals, found that 98 per cent expect funds to invest in digital assets in the next five years.
The Amsterdam-headquartered trust also revealed that around 7.2 per cent of hedge fund assets will be invested in cryptocurrencies, like Bitcoin or Ethereum. The forecast could equate to around $312bn in digital currencies across the industry.
Technology in the financial sector could be a game-changer, respondents suggested, as over half said analytics and artificial intelligence (AI) have the most potential to streamline their operations.
Hedge funds must evolve to meet investor demand, and with that, comes the world of digital assets which have erupted in popularity during the pandemic.
The executives surveyed in North America, Europe and the UK expect to have at least 1 per cent of their portfolio in crypto in five years.
Funds based in North America anticipate having an around 10.6 per cent exposure to digital assets, while those in the UK and Europe expect 6.8 per cent on average.