Enormous Hedge Funds Turn Their Eyes To Crypto. How Will It Affect The Market?

Are hedge funds ready to go all-in on cryptocurrencies? Probably not, but some of them are definitely dipping their toes in. The thing is, those toes are enormous. In the article “Mainstream Hedge Funds Pour Billions of Dollars Into Crypto,” the Wall Street Journal does a deep dive into the phenomenon. And we get a closer look into who’s doing what and who isn’t there yet. According to Coinbase’s numbers, “institutional investors as a whole traded $1.14 trillion of cryptocurrencies in 2021, up from $120 billion the year before, and more than twice the $535 billion for individual investors.” Those numbers blast past the predictions a survey made just nine months ago, which of course NewsBTC covered: “As per Intertrust, the results of the survey indicate that hedge funds plan to increase their crypto assets in the next five years. An average figure based on the responses shows that by 2026, funds aim to keep $313 billion in digital assets, which is around 7.2% of their total assets.” Why are they investing so much? And, what are the funds that abstain thinking? That’s what we’re here to find out. Let’s start with a quote from Michael Botlo, who ran Quantbot: “The crypto universe is now liquid and large enough to be tradable. Hedge funds are seeing their own investors demand that the firms get involved.” Which Hedge Funds Are In And What Are They Doing? The latest news point to Brevan Howard Asset Management, and Tudor Investment...