Hedge funds to increase cryptocurrency exposure to 7.2%
A survey of hedge fund executives has found a growing acceptance of cryptocurrency
Hedge funds are planning to ramp up their exposure to cryptocurrencies to 7.2% of assets in the next five years, according to a survey by fund adminstrator Intertrust.
The poll of 100 chief financial officers revealed hedge funds intend to increase their exposure to cryptocurrencies by 2026, according to a report in the FT.
The global Intertrust survey found that executives expect to hold an average of 7.2% their assets in cryptocurrencies in five years’ time, while 17% of respondents expected to hold 10% and more in crypto. This could amount to as much as $312bn of assets in cryptos if the survey's results were applied across the whole hedge fund sector.
Hedge funds “are well aware not only of the risks but also the long-term potential” of cryptos, David Miller, executive director at Quilter Cheviot Investment Management told the FT.
Bitcoin rises above $40,000
The price of the largest crytocurrency climbed after Elon Musk said that Tesla would resume allowing transactions made in the digital currency once crypto mining becomes greener.
Simon Peters, cryptoasset analyst at multi-asset investment platform eToro, said even though bitcoin was at its highest level since May, it had yet to convincingly break through and close above the $41,000 mark.
He said: “We've seen the price face resistance earlier in the year at this level when it was trading around what was then an all-time high, and I would really need to see a stronger increase to feel optimistic about the price recovering and possibly pushing onto $50,000 and beyond.”
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