A Quarter Of Hedge Fund Managers Plan To Enter The Crypto Market
Recently, institutional investors and traditional alternative investors have been warming to the crypto market more. Especially this year, it is seen that investments in the crypto market have increased more than in previous years. A quarter of hedge fund managers plan to invest in cryptocurrencies within a year or two, according to a new study published today by two major accounting firms, Ernst & Young.
Hedge Funds are funds that have a wide range of investments and generally invest in risky areas. These funds generally serve qualified investors. Fund managers trade in return for a certain percentage of the profit. Hedge Funds have complex trading strategies and are mostly used for hedging, arbitrage and speculation.
Currently, only 1% or 2% of hedge fund managers invest in the crypto market. This rate, which is quite low, is expected to exceed 20% in the coming years. 45% of fund managers investing in cryptocurrencies directly invest in cryptocurrencies, while 43% invest in derivatives. Also, 36 percent invest in private companies involved in the crypto market, while 29 percent invest in funds pegged to a cryptocurrency.
Currently, Fund managers have little investment in crypto assets, but many plan to increase their investments in the next one to two years. According to an Ernst & Young survey, more than 20% of institutional investors and close to 25% of hedge fund managers plan to invest in crypto assets in the next one to two years.
The entry of institutional and wealthy individual investors into the crypto markets has increased significantly this year compared to previous years and it looks like it will increase even more in the coming years. Especially traditional alternative investors have been more interested in cryptocurrencies lately. This shows that the crypto market will grow even more in the next few years. Currently, the crypto market cap is $2.6 trillion, which could double or triple in the next 3 years.
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