The number of traditional hedge funds investing in digital assets has almost doubled in a year to over one-in-three, according to a report by Business Review. The report cites PwC’s 4th Annual Global Crypto Hedge Fund Report 2022, produced together with the Alternative Investment Management Association (AIMA) and Elwood Asset Management, as revealing that of the traditional hedge funds surveyed, 38% are currently investing in digital assets, compared to 21% a year ago.  

The number of traditional hedge funds investing in digital assets has almost doubled in a year to over one-in-three, according to a report by Business Review. The report cites PwC’s 4th Annual Global Crypto Hedge Fund Report 2022, produced together with the Alternative Investment Management Association (AIMA) and Elwood Asset Management, as revealing that of the traditional hedge funds surveyed, 38% are currently investing in digital assets, compared to 21% a year ago.  

In addition there are now estimated to be over 300 specialist crypto hedge funds operating globally with the pace of new funds launching having accelerated over the last two years. Total assets under management (AuM) by crypto hedge funds has risen by 8% in a year and now stands at USD4.1 billion. 

Of the traditional hedge funds surveyed, most have modest exposure to digital assets with 57% reporting less than 1% of total AUM. For 20 per cent though, Digital assets account for 5-20% of AUM, while 67% intend to increase their exposure by the end of this year.