Traditional hedge funds want to invest more capital in crypto: PricewaterhouseCoopers

Global business and accounting advisory PricewaterhouseCoopers (PwC) reveals that traditional hedge funds are planning to increase their investment in crypto assets before the end of the year. In the company's latest Crypto Hedge Fund report, PwC says the vast majority of traditional hedge funds investing in cryptocurrencies are planning to increase their allocations to the emerging industry before the end of the year. “About a fifth of hedge funds invest in digital assets (21%); The average percentage of hedge funds' total assets under management invested in digital assets is 3%. More than 85% of these hedge funds plan to put more capital in the asset class by the end of 2021. Traditional hedge funds investing in cryptocurrencies allocated about 3% of their assets to management, according to PwC. PwC adds that 57.1% of non-crypto hedge funds invest in digital assets for general diversification. The funds are striving to "exposure to a new value creation ecosystem". Only 14% say they are looking for protection against inflation. Additionally, PwC highlights the barriers traditional hedge funds face when considering investing in cryptocurrencies. Regarding investment, regulatory uncertainty is by far the biggest obstacle (82%). Even those who invest in digital assets say this is a huge challenge (50%). With high customer response / reputation risk (77%) and digital assets falling outside of current investment requirements (68%), more than half of ten respondents said they did not know enough about digital assets (64%). “According to the PwC report, more than half of the hedge funds surveyed will initiate or increase crypto investments if these barriers are lifted. 64% of those surveyed said they would definitely increase their participation if the main barriers were removed, the investment starts / accelerates or maybe they change their approach and get more involved. "Born

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