Hedge Fund Survey "Cryptocurrency Share to Increase to 7.2% in 5 Years"

Dutch Financial Custodian Survey "Amounting to 312 Billion Dollars"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Byunghee Park] Major foreign media reported on the 15th (local time) that hedge funds are expected to significantly increase their cryptocurrency holdings over the next five years.

According to a survey conducted by Dutch financial custodian Intertrust targeting 100 hedge fund Chief Financial Officers (CFOs), they responded that they plan to increase the proportion of cryptocurrency holdings to an average of 7.2% of their total assets within five years. North American hedge fund CFOs said they would hold an average of 10.5%, while UK and European hedge fund CFOs said they would hold an average of 6.8%. The hedge funds of those who responded to the survey were confirmed to manage an average of $7.2 billion in assets.

Intertrust estimated that the 7.2% proportion would amount to approximately $312 billion in value. The percentage of respondents who said they would hold more than 10% was also as high as 17%.

The survey results are interpreted as showing growing interest in cryptocurrency among hedge funds.

Currently, the exact amount of cryptocurrency held by hedge funds is unclear, but some large funds are known to hold small amounts of cryptocurrency.

Man Group trades Bitcoin futures using computer programs, and Renesas Technology stated last year that it could invest in Bitcoin futures. Among famous hedge fund managers, some have publicly disclosed that they have purchased or support Bitcoin. Anthony Scaramucci, a hedge fund manager with experience working at the White House, reportedly bought Bitcoin at the end of last year and reduced his holdings in April this year.

On the other hand, Paul Singer, founder of Elliott Management, wrote in a letter to investors earlier this year that cryptocurrency could be the biggest financial fraud in history.

Due to the possibility of regulatory actions by financial authorities on cryptocurrency, hedge funds are reportedly recommending cryptocurrency investments only to some clients and are also limiting the investment scale. The Basel Committee on Banking Supervision, a financial regulatory body, stated last week that the strongest capital regulations should be applied to cryptocurrency among all assets.

This content was produced with the assistance of AI translation services.