The chief government of crypto asset administration firm Galaxy Digital, Mike Novogratz, thinks the vast majority of crypto hedge funds may very well be headed towards darkish days sooner or later.
Novogratz outlined his opinions whereas talking at Piper Sandler International Trade & Brokerage Convention on Wednesday, predicting that two-thirds of the roughly 1900 crypto hedge funds in existence will exit of enterprise as a result of bear market.
The CEO attributes the crypto downtick to macroeconomic forces impacting the general monetary market. He says hedge funds might be pressured to restructure as quantity goes down.
A brand new survey from world accounting big PricewaterhouseCoopers (PwC) signifies that digital belongings have gotten an essential factor of conventional hedge funds as 38% now put money into the area. This can be a greater than 80% improve from one 12 months in the past when 21% of funds had been invested within the area.
Explains PwC,
“Most conventional hedge funds stepping into digital belongings are nonetheless simply dipping their toes – 57% have lower than 1% of whole [assets under management] in digital belongings. However it’s notable that for 20% of those funds, digital belongings signify between 5% and 50% of AuM [assets under management].
Additional, two-thirds of funds (67%) at the moment investing in digital belongings intend to deploy extra capital into the asset class by the tip of 2022.”
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