New research from PricewaterhouseCoopers (PwC) shows that traditional hedge funds are slowly embracing cryptocurrency investments, but their exposure is limited as the market continues to mature.
In its fourth annual report on global crypto hedge funds for 2022, PricewaterhouseCoopers stated that about one-third of the traditional hedge funds surveyed are already investing in digital assets such as Bitcoin. So-called "multi-strategy" hedge funds were the most likely to invest, followed by macro strategy firms and equity strategy firms.
Among hedge funds currently investing in the crypto space, 57% of funds allocate less than 1% of their total assets under management to cryptocurrencies. Two-thirds of companies currently investing in plan to increase their investments by the end of 2022.
Funds surveyed cited "regulatory and tax uncertainty" as the biggest barrier to investing. Specifically, hedge funds are concerned about a fragmented regulatory environment around the world and unclear guidance on how the asset class should be governed.
The survey was conducted in the first quarter of 2022, and a total of 89 hedge funds participated in the survey.
Most hedge funds surveyed by PwC have over $1 billion in assets under management Source: PwC
Hedge funds and other traditional asset managers have been watching developments in the crypto space to gauge whether they should start investing in the space. While some hedge funds have set up crypto departments and started investing in the space, most firms are still on the sidelines. Interestingly, a 2021 survey of 100 global hedge funds showed that fund managers expect to allocate an average of 10.6% of their funds to cryptocurrencies within five years.
While crypto assets have been in a protracted bear market for most of 2022, institutional investors appear to be buying the dip of late. Inflows into bitcoin investment products such as exchange-traded funds and Grayscale’s GBTC product rose by $126 million last week, according to CoinShares. Since the beginning of this year, Bitcoin investment funds have quietly flown in more than 500 million US dollars.
South Korean police have arrested seven individuals in a raid on a “crypto-powered drug dealing” operation suspected of smuggling methamphetamine into the country from abroad. Authorities are expanding their investigation to uncover the drug distribution network's true nature.
KikyoChina's OTC cryptocurrency market has surged, with inflows exceeding $20 billion in each quarter of 2024, totaling $75.4 billion in nine months. Despite a strict ban on crypto trading, demand remains high, leading investors to use OTC services and peer-to-peer trading to access digital assets.
AnaisThe US DOJ has filed an antitrust lawsuit against Visa, accusing it of maintaining a debit payments monopoly. The DOJ claims Visa uses exclusivity agreements and penalties to stifle competition, forcing businesses to use its network while blocking new competitors from entering the market.
CatherineEasyA has partnered with the Web3 Foundation to launch the EasyA x Polkadot University, funded by a grant to provide workshops, hackathons, and grants aimed at fostering innovation within the Polkadot ecosystem. This initiative responds to the rising demand for Web3 professionals and seeks to educate the next generation of blockchain developers.
AnaisArchaeologists have discovered 303 new geoglyphs in the Nazca Lines of Peru using artificial intelligence, significantly enhancing the understanding of these ancient markings. This breakthrough highlights the potential of technology in archaeology, revealing new insights into the Nazca civilization and its mysterious creations.
AnaisAhead of the 26 September HMSTR token launch, Hamster Kombat announced plans for NFTs, new games, and less reliance on Telegram. By 2025, it aims to launch an NFT marketplace, host a clan championship, and start the second phase of its airdrop.
CatherinePayments giant PayPal now allows US merchants, except New York, to buy, hold, and sell crypto via their business accounts. This move expands PayPal's crypto accessibility, offering enhanced financial tools to millions of businesses.
KikyoSouth Korea is launching the Digital Asset User Protection Foundation to help users recover funds trapped in failed cryptocurrency exchanges, which have seen ten out of 22 platforms shut down. The foundation, expected to start operations in October, will coordinate with defunct exchanges to securely manage and return users' assets.
AnaisOpenAI is transitioning to a for-profit benefit corporation. Reports suggest that Sam Altman could receive a 7% equity stake, potentially valued at $10.5 billion. This prompts an important question: why are so many key insiders departing?
CatherineA Singapore court granted WazirX a four-month conditional moratorium after its July hack, which led to a $234 million loss. The exchange initially requested six months but received a shorter relief period under specific conditions to address its financial situation.
Kikyo