Hedge Funds' Long-Term Crypto Interest Remains Robust Even as Proportion Investing Drops: PwC

The proportionality of accepted hedge funds investing successful crypto assets declined successful the past 12 months though the semipermanent outlook remains positive, according to a caller report by Big Four accounting steadfast PricewaterhouseCoopers (PwC).

The percent of funds with crypto vulnerability fell to 29% from 37% successful 2022, according to the Global Crypto Hedge Fund Report. No accepted hedge funds program to alteration their vulnerability this year, it said.

More than a 3rd (37%) of funds without crypto vulnerability said they are curious, but are waiting for the plus people to mature further. That's up from the 30% reported a twelvemonth ago. More than half, 54%, said they are improbable to put successful the adjacent 3 years, compared with 41% successful the erstwhile report.

Overall, the study speaks to a mixed sentiment toward crypto from accepted fiscal institutions, with "regulatory uncertainty" the ticker words, arsenic is often the case. PwC recovered that astir a 4th of hedge funds are reassessing their strategies owed to the regulatory situation successful the U.S., with 12% considering relocating from the U.S. to much crypto-friendly jurisdictions.

“Despite marketplace volatility, a autumn successful integer plus prices and the illness of a fig of crypto businesses, concern successful crypto-assets is expected to stay beardown successful 2023," Jon Garvey, PwC United States' planetary fiscal services leader, said. "Traditional hedge funds, committed to the marketplace successful the longer term, are not lone expanding their crypto-assets nether management, but besides maintaining – if not expanding – the magnitude of superior deployed successful the ecosystem."