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Nearly half of hedge funds focused on traditional assets now have crypto exposure, driven by regulatory clarity and the launch of ETFs, according to a new survey. 
A growing number of <a href="https://crypto.news/tag/hedge-fund/" target="_blank">hedge funds</a> focused on traditional asset classes are embracing crypto, a move driven by enhanced regulatory clarity and the launch of exchange-traded funds in the U.S. and Asia, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-10-10/almost-half-of-traditional-hedge-funds-are-dabbling-in-crypto?srnd=phx-markets" target="_blank" rel="nofollow">reports</a>, citing a new survey by the Alternative Investment Management Association and PricewaterhouseCoopers. 
The report found that 47% of hedge funds trading in traditional markets now have exposure to cryptocurrencies, up from 29% in 2023 and 37% in 2022. Among these funds, 67% plan to maintain their current level of investment in cryptocurrencies, while the remainder intend to increase their exposure by the end of 2024. 
 You might also like: <a rel="" href="https://crypto.news/goldman-sachs-crypto-options-trading/"> Goldman Sachs hedge fund clients show interest in crypto options trading </a> 
Initially, many hedge funds ventured into crypto by trading tokens in the spot market. However, the report indicates a shift towards more sophisticated trading strategies, with 58% of funds involved in crypto trading derivatives in 2024, up from 38% the previous year. At the same time, the proportion of funds trading spot markets has decreased to 25% from a peak of 69% last year. 
Despite the growing interest, some hedge fund managers still remain hesitant as the survey revealed that 76% of those not currently invested in crypto are unlikely to change their stance in the next three years, an increase from 54% in 2023. 
Additionally, two-thirds of traditional hedge funds do not plan to integrate <a href="https://crypto.news/tag/bitcoin-etf/" target="_blank">Bitcoin ETFs</a> into their existing crypto-focused strategies. The survey, which involved 100 hedge funds — 42% focusing on traditional assets and the rest on crypto — was conducted in Q2. 
 Read more: <a rel="" href="https://crypto.news/analyst-crypto-etfs-to-form-5-of-hedge-fund-by-2025/"> Analyst: Crypto ETFs to form 5% of hedge fund by 2025 </a>

Nearly 50% of traditional hedge funds have crypto exposure: PwC

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