Bitcoin’s sharp decline of over 20% this past week took crypto liquid funds by surprise, despite the commodity later rallying back on certain fronts. According to fund managers, the impact of Bitcoin’s decline was less from any particular event and more so because of the swiftness of the shift in
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
Since intra-period Bitcoin returns peaked at 131% last year. 70 crypto hedge funds used a market-neutral investing strategy. According to PwC’s 2022 Global Crypto Hedge Fund Report, hedge funds are investing in cryptocurrencies at an all-time high despite the volatility. According to the report, the market currently has around 300
