Additionally, by the end of 2022, two-thirds of the funds presently investing in digital assets want to increase their capital allocation.
Multi-strategy funds (32%), macro funds (21%), and systematic funds (12% of which said they had exposure) are the hedge funds with the largest digital asset exposure.
According to PwC, family offices and high-net-worth people are at the vanguard of digital asset investment.
The survey found 86% of traditional hedge funds have high-net-worth and family office investors, whereas 66% of crypto hedge funds do.
While crypto hedge funds’ median performance was 63.4%, slightly higher than bitcoin’s 60%, returns have since plummeted. Last November, bitcoin was trading at $65,481, but it dropped down to $29,421 last week and $30,491 by lunchtime Wednesday.