Survey finds that many hedge funds plan to invest in crypto by 2026
June 15, 2021, 6:51PM EDT
1 min read
A survey from the Intertrust Group, a Dutch trust and corporate management company, found that 98% of hedge funds — an "overwhelming majority," states the survey — will have some kind of crypto exposure by 2026.
Survey results were shared with The Block but first reported by the Financial Times.
In addition, an average of 7.2% of hedge funds’ assets will be in crypto, according to the survey, which interviewed 100 hedge fund executives to achieve its results.
“It comes after a stellar performance from cryptocurrencies such as bitcoin and ethereum in the past year, and growing interest from institutional and retail investors in digital assets,” the survey states. “Hedge funds will need to prepare for this change in their allocation. They will need to think about where the assets are custodied, how they strengthen their operational controls around crypto investments and how they verify the assets."
North American, European, and British hedge fund executives intend to have crypto comprising 1% of their portfolio by 2026.
Hedge funds already have been showing interest in crypto, with even the skeptical Bridgewater — the world’s largest hedge fund — paying attention to bitcoin.
Executives from FalconX, a digital asset trading platform, previously told The Block that it saw hedge fund managers buying into the BTC dip that occurred in mid-May.