- 47% of the traditional hedge funds have exposure to cryptocurrencies.
- Out of 100 hedge funds, 42% were focused on traditional assets.
The hedge funds have focused on traditional asset classes and have exposure to the cryptocurrency market. Approximately 50% of the hedge funds have allocated capital to digital assets, marking an increase compared to previous years.
Reportedly, 47% of the hedge funds invested in traditional asset classes have ventured into cryptocurrencies in 2024, up from 29% in 2023 and 37% in 2022.
It was driven by more defined regulatory frameworks and the launch of spot cryptocurrency ETFs in the United States and Asia.
Moreover, 67% of these funds intend to keep the current capital in digital assets. Meanwhile, the remaining 33% are to increase capital allocation by the end of 2024.
All the hedge funds are not involved in the digital asset space, as per the survey. Around 76% of hedge fund managers who are currently not invested in cryptocurrencies will continue not to invest in the asset class over the next three years. The figure has risen from 54% in 2023. Besides, two-thirds of the traditional hedge funds have no plans to include spot Bitcoin ETFs in their digital asset strategies.
On the other hand, 42% of the 100 hedge funds were focused on traditional assets. The remaining 58% were invested in cryptocurrencies. The survey was conducted in the second quarter of 2024.
Evaluating the Market Performance
The crypto market cap has drastically increased over the past year. In October 2023, the overall market cap was staying at $1.06 trillion. At press time, it has increased to $2.13 trillion. Meanwhile, the market cap breakdown observed over the past year for BTC was marked at $1.23 trillion and ETH at $293 billion. Whereas stablecoins and other tokens stayed at $165 billion and $478 billion, respectively.
In addition, the largest cryptocurrency, Bitcoin (BTC), reached its all-time high in March. Currently, the asset trades at $61K, with its trading volume staying at $28.35 billion, gaining over 8% over the last 24 hours.
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