Title: Traditional Hedge Funds Show Mixed Sentiment Towards Crypto Investments, PwC Report Finds
In a new report released by PricewaterhouseCoopers (PwC), it was revealed that the proportion of traditional hedge funds investing in crypto assets has declined over the past year. Despite this decrease, the long-term outlook for crypto investments remains positive.
According to the Global Crypto Hedge Fund Report, the percentage of funds with crypto exposure dropped from 37% to 29% in 2022. However, the report also noted that no traditional hedge funds are planning to decrease their exposure to crypto assets this year.
Interestingly, the report found that more than a third of funds without crypto exposure are curious about the asset class but are waiting for it to mature further. This sentiment has increased from the previous year, with 37% of funds expressing interest compared to 30% in the past.
On the other hand, over half of the funds without crypto exposure (54%) stated that they are unlikely to invest in the next three years, up from 41% in the previous report. This mixed sentiment reflects the uncertainty surrounding regulatory issues in the crypto space.
The report also highlighted that almost a quarter of hedge funds are reassessing their strategies due to regulatory uncertainty in the U.S., with 12% considering relocating to more crypto-friendly jurisdictions.
Despite these challenges, Jon Garvey, PwC United States’ global financial services leader, remains optimistic about the future of crypto investments. He stated, “Investment in crypto-assets is expected to remain strong in 2023, with traditional hedge funds not only increasing their crypto-assets under management but also maintaining or increasing the amount of capital deployed in the ecosystem.”
Overall, the report paints a picture of traditional financial institutions navigating the complexities of the crypto market, with regulatory uncertainty playing a significant role in their decision-making process.
For more information, you can read the full report on Coindesk: [Link to the article]
