The chief government of crypto asset administration firm Galaxy Digital, Mike Novogratz, thinks the vast majority of crypto hedge funds may very well be headed towards darkish days sooner or later.
Novogratz outlined his opinions whereas talking at Piper Sandler International Change & Brokerage Convention on Wednesday, predicting that two-thirds of the roughly 1900 crypto hedge funds in existence will exit of enterprise because of the bear market.
The CEO attributes the crypto downtick to macroeconomic forces impacting the general monetary market. He says hedge funds can be pressured to restructure as quantity goes down.
A brand new survey from world accounting large PricewaterhouseCoopers (PwC) signifies that digital property have gotten an vital aspect of conventional hedge funds as 38% now put money into the area. It is a greater than 80% enhance from one yr in the past when 21% of funds have been invested within the area.
Explains PwC,
“Most conventional hedge funds moving into digital property are nonetheless simply dipping their toes – 57% have lower than 1% of whole [assets under management] in digital property. However it’s notable that for 20% of those funds, digital property symbolize between 5% and 50% of AuM [assets under management].
Additional, two-thirds of funds (67%) at present investing in digital property intend to deploy extra capital into the asset class by the top of 2022.”
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