𝗛𝗲𝗱𝗴𝗲 𝗙𝘂𝗻𝗱𝘀 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗮𝘀𝘀𝗲𝘁𝘀

⚠️ Findings from PWC’s 6th annual hedge fund survey:

🏛️47% of traditional hedge funds surveyed have exposure to digital assets, up from 29% in 2023 and 37% in 2022, driven by increased regulatory clarity and the launch of spot cryptocurrency ETFs in Asia and the U.S. Among those invested, 67% plan to maintain the same level of capital employed, while the remaining 33% plan to invest more by the end of 2024.

🌍 The Cayman Islands (63%) is the number one fund jurisdiction for digital asset funds, followed by Gibraltar (19%), the U.S. (16%), and BVI (7%). A year ago, the Cayman Islands represented only 34%, while the U.S. was home to 28%.

🧰 Only 10% of digital asset hedge funds use ETFs (or ETPs), while 25% of traditional hedge funds invest in digital assets. 88% of digital asset hedge funds use ‘spot’ while only 25% of traditional hedge funds trade spot; the numbers for derivatives (futures/perpetual futures) are 64% and 58%, respectively.

🧲 Prime brokerage, legal, and compliance services are the most significant market infrastructure improvements for traditional hedge funds investing in digital assets.

✅ In contrast, digital asset hedge funds see banking rails and prime brokerage as infrastructure roadblocks. Regularity uncertainty is a key risk for traditional and digital asset hedge funds.

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