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Laxman Pai, Opalesque Asia: Almost half of the traditional hedge funds are exploring digital assets or are currently investing in them with around a fifth of traditional hedge funds having holdings already, said a study.
The research by the Alternative Investment Management Association (AIMA), conducted in partnership with PWC and Elwood Asset Management, surveyed 39 hedge funds in the first quarter this year with a total of $180 billion in assets under management.
A report found that 47% of traditional hedge funds have entered or plan to enter the crypto market, with 21% currently investing in digital assets and 26% in the late-stage planning of investing. Of the hedge funds already invested, 86% also intend to deploy more capital into the asset class by the end of this year.
Around a quarter of hedge fund managers who are not yet investing in digital assets confirmed that they are in late-stage planning to invest or looking to invest (26%), it said.
When asked what investment strategies (fundamental, trading, arbitrage, venture, pre/post-ICO, passive, other) best describe hedge funds' exposure to digital assets, the majority responded with fundamental (57%) and trading (57%), said the report. Those currently adopting a passive approach to investing in digital assets included 29% of respondents, with the same number stating they are using arbitrage.
In terms of the main obstacles to investing, regulatory uncertainty is by far the greatest barrier (...................... To view our full article Click here
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