EY, one of the world’s four largest consulting and auditing firms, has found that one in four hedge funds plan to increase their crypto exposure for the next year. EY’s 2021 Global Hedge Fund Survey describes that hedge fund managers are slowly taking a stable place in investor portfolios, with digital assets present, albeit in a modest way.
EY survey finds hedge funds hungry for crypto exposure
The 2021 Global Alternative Fund Survey, a survey compiled by EY, one of the Big Four, shows the performance and popularity of alternative fund managers among investors during the year. The survey revealed that hedge funds are one of the most open platforms for including crypto assets in their structures. According to the survey, one in four hedge funds are studying to increase their exposure to cryptocurrencies over the next year.
Due to the coronavirus pandemic, investors have had to go through an interesting year with many challenges, and navigating through this has provided a great opportunity for hedge fund managers. However, cryptocurrency is currently not popular with a lion’s share of these fund managers, with just one in ten reporting having exposure to these assets, showing there is room for it. the growth. In any case, these funds have had an impressive performance. 51 percent of investors surveyed said they have increased the value of these alternative investments, meeting or exceeding their expectations.
Digital assets as alternative investments
The rise of digital assets (cryptocurrencies) as an important asset class has prompted companies and fund managers to view them as relatively profitable commodities in today’s complicated markets. While their actual involvement with cryptocurrencies has not been as extensive as with other unregulated assets, they are starting to carve out a niche in the field.
This growth has been achieved in the face of a current volatile traditional investment situation, with investors seeking to enter new markets with new strategies. The survey made these findings based on conversations involving 210 managers and 54 investors and offers a glimpse into the future of alternative investments and how cryptocurrency could be a big part of it.
Commenting on the importance of the decisions taken in this pivotal year, Natalie Deak Jaros, co-leader of EY Global Hedge Fund, said:
This research highlights the resilience of our industry and the key transformations that managers and investors are teaming up to affect. 2021 has been a year in which the industry has invested to create significant momentum around various initiatives that will bear fruit for years to come.
What do you think of the in four hedge funds that are studying to increase their exposure to cryptocurrencies next year? Tell us in the comments section below.
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