Hedge funds announced plans to increase the share of investments in cryptocurrency

By 2026, investment funds plan to keep about $ 312 billion in digital assets.

Hedge funds plan to significantly increase the share of investments in cryptocurrency by 2026, writes the Financial Times with reference to a study by the Intertrust fund.

According to a survey of 100 hedge fund CFOs around the world, they plan to hold 7.2% of their assets in crypto on average in five years.

Based on a predictive estimate of the hedge fund market from analyst firm Preqin, Intertrust predicts that by 2026 hedge funds will hold around $ 312 billion in digital assets.

The greatest risk appetite was demonstrated by funds from North America – on average, they expect that in five years, 10.8% of their assets will be in cryptocurrencies.

As noted by the FT, the exact size of hedge fund investments in cryptocurrency is currently unknown, but a number of well-known funds and their managers have already invested in this asset.

Among them are the Brevan Howard Foundation and billionaire manager Paul Tudor Jones.

For SkyBridge Capital, founded by former White House communications director Anthony Scaramucci, bitcoin has become the main source of profit at all – the company invested in cryptocurrency at the end of 2020 and reduced investments in it in April, shortly before the asset plummeted in price.

As the FT notes, not all hedge funds are optimistic about Bitcoin and other cryptocurrency. For example, in a letter to investors this year, Paul Singer’s Elliot Management fund indicated that cryptocurrency could be “the greatest scam in history.”

In early June, the popular US broker Interactive Brokers promised its clients access to cryptocurrency trading by the end of the summer. Interactive Brokers customers can now trade bitcoin futures on the broker’s electronic platform.