The opportunities and the potential of digital assets are immense, especially cryptocurrency. They are the future of digital assets and can transform it altogether. Let’s take a better look at this area.
One of the most popular and recent developments should be the crypto hedge funds. Why? This is because, in the conventional crypto funds, there were just private traders and investors. With the emergence of crypto hedge funds, there is a significant rise in the number of professionals in this market, which is surely commendable. According to the data published this year, 63% were launched in 2018 and 2019.
Based on the PwC-Elwood Crypto Hedge Fund’s recent reports, one of the most common and well-known crypto hedge fund strategies is quantitative, which is about 48% of the funds. Discretionary long-only for 19% and discretionary long/short for 17%, and multi-strategy for 17% follows the list.
Another fact based on the annual PwC–Elwood Crypto Hedge Fund Report, the most common crypto hedge fund strategy, is quantitative (48% of funds). It is followed by discretionary long-only (19%), discretionary long/short (17%), and multi-strategy (17%). And according to them, crypto hedge funds are indeed one of the best options out there as digital assets. They have the potential to supply sustainable income.
The future is Crypto Hedge Funds
The majority of the people investing in such an arena are either family offices or individuals with a high net worth. This market is evolving in a pretty significant way and will surely boom in the next few years for the very right reasons.
Based on the sources, the assets of crypto hedge funds have doubled from $22 million to $44 million in just a matter of a year. Isn’t this fascinating? People are ditching their old methods and gradually switching to the new digital means of investing. The former CEO of Prudential Securities also suggested that Bitcoin and other cryptocurrencies are indeed safe options.
In the month of May 2020, Bitcoin had an ideal inflammation, and investors clearly see the potential in the hedge funds. They are potent enough to be a significant part of the additional inflow of capital in their world of investment.
Increase in investor demand
With the transparency and the clarity that regulated crypto hedge funds provides in the market, there is a prominent growth among the investors. As mentioned before, the digits have been doubled by a year. There is a precise prediction that the number might triple by the end of 2020, which is undoubtedly a considerable feat. Compared to the other assets, these are a small sum, but this industry’s growth is insane!
With such growth, bitcoin is surely becoming the digital store of value. The recent hedge inflation indicates that the demand from investors is increasing with every passing day.
The options and prospects of Cryptocurrency hedge funds are immense. Thus, by now, it is pretty evident why cryptocurrency hedge funds are undoubtedly a great deal. Investors are gradually understanding its worth and have started to invest in them. Suppose you are a budding investor and are clearly thinking about investing. In that case, this should be your first choice right now since the old ones are surely outdated, and the new digital assets have clearly taken their place.