Bloomberg: Nearly half of traditional hedge funds are getting involved in cryptocurrency

BlockBeats news, October 10, according to Bloomberg, the Alternative Investment Management Association (AIMA) and PricewaterhouseCoopers (PwC) released the "Global Crypto Hedge Fund Report" on Thursday, showing that 47% of hedge funds trading in traditional markets have been involved in digital assets, up from 29% in 2023 and 37% in 2022. Of the funds that have already invested in crypto, 67% plan to maintain the same level of crypto capital, while the remaining funds plan to increase investment by the end of 2024.

According to the report, although many hedge funds initially entered the crypto field by trading tokens in the spot market, they are now increasingly adopting more complex strategies. Among the funds involved in crypto trading, 58% of funds traded derivatives in 2024, up from 38% in 2023, while the proportion of trading funds in the spot market fell from a peak of 69% last year to 25% this year.

“The results of this year’s report show that confidence has been steadily recovering over the past year,” James Delaney, director of asset management regulation at AIMA, said in an interview. “The regulatory clarity that is beginning to emerge around the world is indeed increasing confidence in this asset class.”

Due to the wild fluctuations in cryptocurrency prices, funds willing to get involved are often able to obtain profitable trading opportunities.