According to BlockBeats, on October 10, Bloomberg reported that the Global Crypto Hedge Fund Report released by the Alternative Investment Management Association (AIMA) and PricewaterhouseCoopers (PwC) on Thursday showed that 47% of hedge funds trading in traditional markets have already entered digital assets, up from 29% in 2023 and 37% in 2022. Of the funds that have already invested in crypto, 67% plan to maintain the same level of crypto capital, while the remaining funds plan to increase investment by the end of 2024.

According to the report, while many hedge funds initially entered the crypto space by trading tokens in the spot market, they are now increasingly adopting more sophisticated strategies. Among funds involved in crypto trading, 58% of funds traded derivatives in 2024, up from 38% in 2023, while the proportion of funds trading in the spot market fell from a peak of 69% last year to 25% this year.

“The results of this year’s report show that confidence has been steadily recovering over the past year,” James Delaney, AIMA’s director of asset management regulation, said in an interview. “The regulatory clarity that is beginning to emerge around the world is really boosting confidence in this asset class.”

Because cryptocurrency prices fluctuate wildly, funds willing to get involved are often able to access profitable trading opportunities.