Whereas some 56% of surveyed crypto hedge funds declare that bitcoin (BTC) was chargeable for a minimum of half of their day by day crypto buying and selling quantity in 2020, with 15% of the funds buying and selling solely in bitcoin, they had been additionally wanting into different cryptoassets.
Among the many prime traded cash by day by day quantity final 12 months, the funds pointed to ethereum (ETH), with 67% of funds buying and selling the cryptoasset, litecoin (LTC), at 34%, chainlink (LINK), with 30%, polkadot (DOT), at 28%, and aave (AAVE) with 27%, in response to a report launched by worldwide consultancy PwC, Elwood Asset Administration, and the Various Funding Administration Affiliation.
“Among the many prime 15 traded altcoins, a few of them are significantly extra common than their market capitalization would counsel. Litecoin and Chainlink are the second and third most traded altcoins, however their market capitalizations are far decrease than Polkadot and Cardano, which fare decrease within the buying and selling ranks,” they famous.
Cryptoassets traded by crypto hedge funds and their market capitalization:
Additionally, in contrast with 2019, the share of funds concerned in staking remained on the identical stage final 12 months, at 42%, whereas lending exercise elevated to 38% in contrast with 33% a 12 months earlier. The identical share of crypto hedge funds engaged in borrowing, at 24%, the report mentioned.
Henri Arslanian, Crypto Chief at PwC, commented that the consultancy expects “inflows into crypto hedge funds to proceed to extend over the approaching months as increasingly more institutional buyers resolve to allocate to this fast-growing house.”
In the meantime, earlier than the latest crash available in the market, fund managers demonstrated a bullish method to bitcoin.
“On the time of the closure of our survey, the bitcoin worth was hovering round USD 59,000, and all however one respondent predicted a price greater than that, with the median predicted worth being USD 100,000. In reality, nearly all of predictions had been within the USD 50,000 to USD 100,000 vary (65%), with one other 21% predicting costs could be between USD 100,000 and USD 150,000,” the report mentioned.
At 11:35 UTC, BTC trades at USD 37,268 and is up by 6% in a day, trimming its weekly losses to lower than 19%.
The fund managers additionally share optimism with reference to the entire crypto market capitalization which, on the time the survey was closed, stood at about USD 2trn.
“Fund managers are additionally bullish, with over 76% of funds estimating that market capitalization would end the 12 months above present ranges, with the median predicted stage at USD 3 trillion, and most forecasts falling within the USD 2 trillion to USD 5 trillion vary,” in response to the report.
At present, it stands above USD 1.6trn.
A number of the different takeaways from the report embody the next knowledge:
- The full property underneath administration (AuM) of the world’s crypto hedge funds elevated to almost USD 3.8bn in 2020 from USD 2bn the earlier 12 months;
- The share of crypto hedge funds with AuM of greater than USD 20m elevated in 2020 from 35% to 46%;
- The typical AuM for the surveyed funds elevated from USD 12.8m to USD 42.8m, whereas the median AuM elevated from USD 3.8m to USD 15m;
- The median crypto hedge fund returned +128% in 2020 towards +30% in 2019.