Nearly Half of Hedge Funds Now Invested in Crypto as Regulatory Clarity Grows

Recent data shows that nearly half of traditional hedge funds are now involved with crypto assets. This shift comes as regulations become clearer.

According to a new report from Bloomberg, a recent survey found that 47% of hedge funds are exposed to crypto. This is a significant jump from 29% in 2023 and 37% in 2022.

The survey was conducted by the Alternative Investment Management Association (AIMA) along with PricewaterhouseCooper (PwC). They discovered that 67% of hedge funds already in crypto plan to keep their current level of investment. Others are looking to increase their exposure.

James Delaney, managing director of asset management regulation at AIMA, shared insights with Bloomberg. He mentioned that the findings reflect a steady recovery in confidence over the past year. He attributes this to the global regulatory clarity that is boosting confidence in the asset class.

However, the survey also revealed some hesitations. About 76% of hedge fund managers who haven’t yet invested in crypto say they’re unlikely to do so in the next three years. This is up from 54% in 2023. Additionally, 66% of traditional hedge funds do not plan to incorporate Bitcoin (BTC) exchange-traded funds (ETFs) into their strategies.

This survey was conducted earlier this year in March and included responses from 100 hedge funds, with 42% of them investing in traditional assets.