Hedge Funds Dive Into Crypto: Nearly 50% Participated in 2024!
47% of traditional hedge fund managers invested in crypto assets, according to the “6th Annual Global Crypto Hedge Fund Report 2024,” released by AIMA (The Alternative Investment Management Association) on October 10, 2024.
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47% of traditional hedge fund managers invested in crypto assets, according to the “6th Annual Global Crypto Hedge Fund Report 2024,” released by AIMA (The Alternative Investment Management Association) on October 10, 2024.
LinkedIn post about AIMA’s new research. Source: linkedin.com
For context, this figure was 29% in 2023 and 37% in 2022.
AIMA analysts attribute this increase to greater regulatory clarity. The report underscores the importance of the U.S. and Asia’s adoption of crypto ETFs, which has increased investor trust in the market.
33% of the funds that have previously invested in crypto plan to increase their capital in this space by the end of 2024, while the remaining 67% intend to maintain their current crypto asset positions.
Furthermore, funds are now employing more advanced cryptocurrency strategies.
Where most hedge funds initially stuck to spot trading, they’ve now expanded to include more sophisticated approaches like derivatives trading.
In 2024, 58% of hedge funds are now trading futures, up from 38% in the previous year.
Not All Hedge Funds Are Crypto-Friendly
Many hedge fund managers remain resistant to incorporating cryptocurrency trading strategies. In fact, 76% of those not currently trading digital assets say they have no plans to alter their stance for at least the next three years.
This figure was only 54% last year.
At first glance, this may seem to reflect a growing conservatism among traditional investors. However, it’s more likely a case of “survivor bias”: the funds that were interested in trading crypto have already done so and are no longer part of AIMA's survey.
The survey took place in Q2 2024.
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