PwC's Global Crypto Hedge Fund Report reveals a significant surge in hedge fund interest in digital assets. The report shows that 47% of traditional hedge funds now allocate to crypto, a notable increase from 29% in 2021. This trend suggests growing recognition of crypto's potential as an investment class. Of the hedge funds investing in digital assets, a majority (67%) intend to maintain their current investment levels, while the rest plan to increase their exposure by year-end. Notably, 58% of surveyed hedge funds utilize crypto derivatives in their strategies. Despite the increasing adoption of crypto, the report indicates that two-thirds of traditional hedge funds have no plans to incorporate Bitcoin ETFs into their digital asset portfolios. Edward Chin, co-founder of crypto hedge fund ParaFi Capital, attributes the surge in hedge fund interest to the inefficiencies in crypto markets, which present opportunities for higher returns through traditional investment strategies.