Almost 50% of Traditional Hedge Funds Now Invest in Cryptocurrencies, Up from 29% Last Year

Almost half of traditional hedge funds are now investing in cryptocurrencies. This is a significant jump from 29% last year, according to a recent report from the Alternative Investment Management Association (AIMA) and PwC.

Why the change? Increased clarity around regulations and the launch of exchange-traded funds (ETFs) in the U.S. and Asia are bringing more investors into the crypto space.

The survey shows that 47% of hedge funds focused on traditional assets have exposure to digital assets. That’s up from 29% in 2023 and 37% in 2022. This trend highlights a growing acceptance of cryptocurrencies.

Among those already invested, 67% plan to keep their current level of investment in crypto. The rest are looking to invest even more by the end of 2024. This indicates a strong belief in the potential of digital assets.