Traditional Hedge Funds Not Deterred by Crypto Market Downturn and Volatility

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Despite the ongoing market uncertainty, traditional hedge fund entities continue to pour funds into cryptocurrency products and assets.

from June 2021 revealed that nearly 100% of hedge funds intend to allocate 7.8% of their portfolios into crypto by 2026.

The most-traded digital asset for crypto hedge funds was Bitcoin, with Ether coming second, followed by Solana, Polkadot, Terra, and Avalanche.Although more traditional hedge funds are getting into crypto, most still exercise caution. According to the survey, 57% allocated less than one percent of their total assets under management to cryptocurrency.

Meanwhile, regulatory uncertainty was the biggest barrier for respondents not involved in crypto investment, while hedge funds with such exposure said that the absence of tax and regulatory clarity was a major challenge.

 

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