According to the recent survey report published by Intertrust Group, a management firm in Amsterdam, traditional hedge funds are now showing more and more interest in cryptocurrencies and would most likely continue for the next half-decade.
The survey, which includes 100 CFOs from today’s most prominent hedge funds from all over the globe, shows that 98% of them are interested in investing in crypto at the very least – expecting to commit over 7.2% of their investment holdings into the digital asset. Interestingly, one in six of the mentioned 100 CFOs surveyed implied their willingness to invest at least 10%. At the same time, three undisclosed respondents expect to invest more than 20% of their entire holdings. Needless to say, traditional hedge funds are now indeed more than ready to try their hands out with cryptocurrencies.
Intertrust’s report notes that the timing of the survey couldn’t come any better as it establishes a significant confidence vote for the digital assets amidst the several capital constraints announcements and market crash instances recently. This is because these hedge funds are dispersing short-term price and regulatory volatility risks by allocating a small portion of their investment holdings towards cryptocurrencies for long periods.
With that being said, the average 7.2% the survey shows is still an excellent improvement from where it was years prior, reflecting the world’s now seemingly excellent preparedness to accept cryptos. The survey report notes that hedge funds alone could be responsible for about $312 billion of total inflow towards cryptos for the next five years.