Hedge fund managers aim to convert 10% of their portfolio to crypto

The survey of 100 CFOs at the head of hedge funds concluded that there will be a significant increase in the prevalence of cryptocurrencies in the near term.

When the forecasts of the experts surveyed by Intertrust are reflected across the industry, it becomes clear that the total crypto assets in global hedge funds could reach $312 billion. US-based funds expect the share of cryptocurrencies in their portfolios to rise to an average of 10.6 percent in five years.

Their European Union and UK-based colleagues commented more modestly, with an average of 6.8 percent. The Intertrust survey includes fund custodians who manage an average of $7.2 billion each. CFOs are of the opinion that at least 1 percent of their portfolio should be formed in cryptocurrencies.

High-profile hedge fund managers like Paul Tudor Jones have become one of the prominent proponents of Bitcoin (BTC), while voicing their concerns about inflationary trends in the economy. Anthony Scaramucci, CEO of SkyBridge Capital, is another name that emphasizes Bitcoin’s potential as a store of value, considering it superior to gold.

Another big name in the industry supporting cryptocurrency was Alan Howard, co-founder of prominent asset manager Brevan Howard. This week, Howard has funded two more digital asset ventures, following an investment by Nomura in the digital asset custody services provider created in partnership with Ledger and CoinShares. It also owns a 25 percent stake in One River Digital Asset Management. Brevan Howard also has plans to invest in crypto directly.

Alongside the growing reliance of traditional hedge funds in the asset class, there are also a number of initiatives to launch new crypto funds in hopes of repeating the successes of Bitwise and Grayscale.

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