Hedge Funds See the Fall of Crypto Industry as an Investment Opportunity

Although Bitcoin (BTC) has lost more than half of its US dollar value and altcoins have lost almost 70% on average, big-money players such as hedge funds perceive the fall of the crypto as an investment opportunity.

Hedge funds are establishing a stronger presence in the Bitcoin and blockchain industries. A poll of 100 chief financial officers from hedge funds around the world conducted in June revealed that hedge funds’ crypto exposure is projected to rise over the next five years. 

The Securities and Exchange Commission of the United States is under pressure to create a more stringent regulatory framework for cryptocurrencies.

The Fall Of The Cryptocurrency Industry Perceive As An Investment Opportunity

Marshall Wace, a hedge fund tycoon, was planning to build an investment portfolio centered on digital assets. The CEO of the firm stated that the company’s focus is on initiatives aimed at reinventing financial services, particularly payments. 

Digital money, according to Rajpal, is already altering the architecture of the underlying financial system.

The most recent hedge fund to invest in digital assets is Marshall Wace. In May, the firm participated in Circle’s $440 million funding round.

Brevan Howard launched an $84-million crypto investment fund earlier this year. Marshall Wace has said that it has no plans to acquire a share in any of its assets.

According to BitBull Capital CEO Joe DiPasquale, institutional investors are still interested in investing in cryptocurrency. Professor Emin Gün Sirer believes that the validity of cryptocurrency as an asset class is “beyond doubt” for retirement savings.

Institutional investors have “active and constant engagement,” according to a spokesman for a $200 million Bitcoin hedge fund.

As a result of the current market slump, the business recently rebalanced its cash position, which is termed as an exercise in “financial discipline.”

Major Participants Support More Crypto Regulation

Asset managers, according to cryptocurrency stakeholders, are unconcerned about regulatory concerns. The majority of financial regulators’ attention appears to be focused on protecting individual investors. 

Therefore, Germany’s new law, up to $415 billion in investments may flood into the crypto industry.