Want to know where Bitcoin is going in the next few years? Then take a look at the hedge funds, the famous ones that make the rain and the weather on economic assets! They all plan to have some form of exposure to the crypto market soon.
Up to 10% or more of their portfolio in cryptos
A recent survey was conducted by the Intertrust Group, of 100 hedge fund CFOs, and the least we can say is that they see crypto everywhere in the coming years.
Thus, as The Block notably reports, it is an overwhelming 98% of those surveyed who believe that their funds will be exposed, in one way or another, to crypto-assets in the next 5 years.
On average, these CFOs believe they will own 7.2% of their assets in cryptocurrencies by 2026. As the Financial Times points out, 17% of them (mostly US-based) are even seriously considering owning more than 10% of their assets in cryptos.
“This comes after a stellar performance by crypto-currencies; such as Bitcoin and Ethereum; over the past year, and a growing interest in digital assets by institutional and retail investors (…)”
From the Intertrust survey
All this would represent a potential windfall of more than $300 billion, ready to gorge the crypto asset market.
Even if, between late 2020 and early 2021, the cryptosphere has already seen the first large funds arrive massively in the sector – like Guggenheim Partners again recently – it could be that this is only a first wavelet, before a much bigger surge of investments. The question is: will hedge funds buy at current prices, or will they try to wait for a significant drop in prices?
