EY Survey Finds 1 in 4 Hedge Funds to Increase Crypto Exposure Next Year – Bitcoin News

EY, one of many large 4 consulting and auditing companies on the earth, discovered that one in 4 hedge funds expect to extend their crypto publicity for the subsequent yr. The 2021 EY Global Alternative Fund Survey describes that various fund managers are slowly taking a steady place within the portfolios of buyers, with digital belongings being current, albeit in a small manner.

EY Survey Finds Hedge Funds Hungry for Crypto Exposure

The 2021 Global Alternative Fund Survey, a survey compiled by EY, one of many large 4 corporations, exhibits the efficiency and recognition of other fund managers amongst buyers throughout the yr. The survey has discovered that hedge funds are probably the most open platforms to incorporate crypto belongings of their buildings. According to the survey, one in 4 hedge funds is learning to extend their publicity to cryptocurrencies within the subsequent yr.

Due to the coronavirus pandemic, buyers needed to undergo an fascinating yr with many challenges, and navigating by way of this gave an enormous alternative to various fund managers. However, cryptocurrency is just not fashionable with a lion’s share of those fund managers at present, with only one in ten reporting having publicity to those belongings, displaying there’s room for development. In any case, these funds had a powerful efficiency. 51 % of the buyers surveyed reported having elevated worth delivered by these various investments, having met or exceeded their expectations.

Digital Assets as Alternative Investments

The rise of digital belongings (cryptocurrencies) as an necessary asset class, has made corporations and fund managers flip their gaze to those as comparatively worthwhile merchandise in as we speak’s convoluted markets. While the actual involvement of those with cryptocurrencies has not been as large as with different nonregulated belongings, they’re beginning to carve a distinct segment within the space.

This development has been achieved within the face of an unstable present scenario in terms of conventional investments, with buyers in search of to occupy new markets with new methods. The survey made these findings based mostly on conversations involving 210 managers and 54 buyers and provides a glimpse on the way forward for various investments, and the way cryptocurrency could be an enormous a part of it.

About the significance of the choices made on this crossroads yr, Natalie Deak Jaros, EY Global Hedge Fund Co-leader acknowledged:

This analysis highlights the resilience of our business and the important thing transformations that managers and buyers are partnering to have an effect on. 2021 was a yr wherein the business invested to construct vital momentum round numerous initiatives that can pay dividends for years to return.

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