Hedge funds increase their holdings by 7%: an overview

Intro: Intertrust has conducted a survey that hedge funds will increase their cryptocurrency holding to 7% in the next five years. By 2026, hedge funds will raise their crypto exposure significantly. It will produce new digital assets and currency confidence.

In the next five years, 7% of crypto assets will be held in hedge funds as per the recent survey by Intertrust. By 2026, hedge funds will raise their crypto exposure significantly. It will produce new digital assets and currency confidence. In a vote of confidence for digital assets after the price falls and plans for punitive new capital rules. 

The survey was conducted among 100 hedge fund CFOs (Chief Financial Officers). As per the survey, it is seen that the executives like to hold an average of 7.2% of your crypto assets within five years. Most of them expect their wealth to grow by 10%.

If this is expected to happen in the next five years and this figure is expected to be the set base for the hedge fund industry, the total amount of assets invested in five years could be shy of $312 billion. 17% of respondents expect that more than 10% own cryptocurrency. This data was based on a data group Preqin’s forecast. This data is for the total size of the hedge fund industry, as per the estimate of the Intertrust. 

Assets and Hedge Funds go hand in hand 

This means that the rise among hedge funds is huge. Currently the holdings in the sector are not known but a number of big names are associated with hedge funds. They also promised that a small amount of crypto assets attracted by high prices and market inefficiencies can be used for arbitrage.

Paul Tudor Jones, a billionaire hedge fund manager, has invested 1% of his assets with the hope to increase it to 5%. Another investor, Anthony Scaramucci is an American Financier of SkyBridge Capital, has also invested in bitcoin but has done it minimally and reduced his holdings due to fear of price dropping. 

Hence, some hedge fund managers believe that crypto is one of the biggest scams in history, holding little or no fiat in the future of the digital currency market. Another concern about the failure of cryptocurrencies is the applicability of the rules in the future. How to regulate cryptocurrencies and what this means for investors is one of the most important and dominant factors or questions investors should ask themselves.

The unpredictable and tough future of the crypto market deflects many investors to plunge into the currency. However, on the other side, there are more cryptocurrencies than ever before.

Some analysts believe that for customers, the purchase of digital assets is still limited, especially for customers with higher risk tolerance. When comparing investment with more traditional assets, investment still accounts for only a small portion of the inevitable assets.

The Future of Crypto

Heavy investment in encrypted assets, but there are disadvantages. The nature of cryptocurrencies and how they work means that they are in a decentralized ledger that is not controlled by anyone. Unfortunately, the anonymity of transactions also makes cryptocurrency an attractive currency.

The other drawback of the crypto is that it can be hacked and erased. However, it will be possible to overcome this problem in the future with the help of advanced technology. Hence, it is important for crypto to act like a fiat currency so that it takes a big jump in the future. 

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