Cryptocurrency assets will witness increased investments from hedge funds by the year 2026.
In a recent survey conducted by Dutch fund services provider Intertrust, it was revealed that hedge funds are planning to significantly boost their investments in cryptocurrencies over the next few years. The survey, which involved 100 hedge fund Chief Financial Officers (CFOs) from North America, Europe, and the UK, was reported by The Financial Times.
The survey results suggest that hedge funds might hold a significant portion of their assets in cryptocurrencies by 2026. In North America, the appetite for Bitcoin and other cryptocurrencies is particularly strong, with U.S. and Canadian hedge fund CFOs expecting an average share of 10.6% of their assets to be in cryptocurrencies by 2026. European and UK participants anticipate an average of 6.8% of their assets to be in cryptocurrencies by the same year.
Intertrust estimates that hedge funds will hold around $312 billion in cryptocurrencies by 2026, assuming the survey results are representative of the industry as a whole. This represents a significant increase from current levels. Hedge funds plan to hold an average of 7.2% of their assets in cryptocurrencies by 2026, with 17% of the surveyed hedge funds anticipating a share of over 10% of their assets in cryptocurrencies by the same year.
Interestingly, the countries expecting the largest increase in cryptocurrency investments by hedge funds and the expected average share of cryptocurrencies in their portfolios for 2026 are not specifically detailed in the survey results. However, it is clear that hedge funds, particularly in North America, are anticipating a substantial increase in their cryptocurrency investments.
The survey also revealed that hedge funds' expected crypto investments in Europe and the UK are lower than in North America. This could be due to a variety of factors, including regulatory differences, investor preferences, and market conditions.
The surge in cryptocurrency investments by hedge funds underscores the growing acceptance and recognition of digital currencies as a legitimate asset class. As more institutions invest in cryptocurrencies, it is likely that we will see increased stability, liquidity, and mainstream adoption of these digital assets.
In conclusion, the survey conducted by Intertrust indicates a strong and growing interest in cryptocurrencies among hedge funds. With the estimated $312 billion in cryptocurrencies expected to be held by hedge funds by 2026, it seems that digital currencies are poised to play a significant role in the investment portfolios of these institutions in the coming years.
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