A survey conducted among 100 hedge funds globally has revealed that their respective chief financial officers (CFOs) are planning to allocate over 7% of their portfolios in Bitcoin and other cryptocurrencies worth $312 billion by 2026.
Hedge Funds Planning to Allocate 7% in Cryptocurrencies
Hedge funds are planning to hold 7% of their assets in digital currencies by 2026 based on a survey conducted by fund administrator Intertrust, according to a Financial Times report.
Based on the forecasts, this signifies that roughly $312 billion in digital currencies will be held by hedge funds within the next five years.
Apparently, North American Chief Financial Officers (CFO) have an increased interest in the nascent asset class, expecting it to reach a 10.6% share of total holdings.
This comes after the increased interest in Bitcoin from prominent names like Stan Druckenmiller, Paul Tudor Jones III, SkyBridge Capital, and more.
David Miller, executive director at Quilter Cheviot Investment Management, hedge funds are “well aware not only of the risks but also the long-term potential” of bitcoin and other cryptocurrencies, as cited by FT.
However, analysts from the consulting company Oliver Wyman argued that crypto purchases still “remain limited to clients that have a high-risk tolerance, and, even then, investments are typically a low proportion of investable assets.”
Hedge Funds Taking Increased Interest Towards Bitcoin
While institutional investors contemplate on whether they should buy or increase their crypto holdings now, others have already done so.
Earlier this year, prominent billionaire hedge fund manager, Paul Tudor Jones III, revealed he has 3% of his wealth invested in Bitcoin, while recently saying he wants to have 5% of his wealth in the flagship cryptocurrency.
At the same time, billionaire investor Stan Druckenmiller too expressed similar sentiments like Paul Tudor just shortly after.
Meanwhile, Anthony Scaramucci, the founder and CEO of SkyBridge Capital, launched a Bitcoin Fund with an initial multi-million dollar investment by the end of last year.