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Laxman Pai, Opalesque Asia:

Even though the percentage of traditional hedge funds investing in crypto declined from 37% to 29% in 2023, confidence in the value proposition and long-term sustainability of crypto assets "appears robust," said a study.

The PwC 5th Annual Global Crypto Hedge Fund Report said that no traditional hedge fund plans to decrease crypto exposure in 2023, regardless of underlying market volatility and regulatory barriers that have weakened confidence in the asset class and the confidence in the value proposition and long-term sustainability of crypto-assets appears robust.

The PwC report produced together with the Alternative Investment Management Association (AIMA) and CoinShares, includes findings from two surveys: one from traditional hedge funds - those who may or may not invest in crypto-assets - and those from crypto hedge funds.

The report also finds that over the last year, the average allocation to crypto-assets managed by traditional hedge funds surveyed increased from 4% to 7%. Meanwhile, 93% of crypto hedge funds surveyed expect the market capitalization of crypto-assets to be higher at the end of 2023.

When asked about plans to increase exposure, more than one-third (37%) of traditional hedge funds that do not invest in crypto-assets say they are curious but are awaiting further asset maturity - an increase from the 30% reported last year - whereas 54% of respondents say they are unlikely to invest over the next thre......................

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