0
0
Hedge funds expect to buy more crypto coins in the coming years. That reports business newspaper Financial Times based on research by financial services provider Intertrust among a hundred hedge funds.
The research shows that there is great confidence in the future of digital currencies among the managers of investment funds.
The hedge funds expect to have invested more than 7 percent of their assets in cryptocurrencies in five years on average. According to the study, if that percentage were to apply to that entire sector, it would mean that a total of about 312 billion dollars would be invested in coins such as bitcoin. However, it is not known how much the investment funds have invested in cryptocurrencies at the moment.
The enthusiasm of the hedge funds contrasts with the scepticism of traditional asset managers. Many of them are concerned about the large exchange rate fluctuations and wonder how digital currencies will be regulated. As a result, hedge funds are generally willing to take a bit more risk than traditional asset managers.
One bitcoin was worth more than $40,000 on Monday morning. That’s about $25,000 less than the record level of nearly $65,000 reached in mid-April. The decline is partly attributed to fears of stricter regulations and the fuss about the high energy consumption when mining digital currencies such as bitcoins.
