The chief executive of crypto asset management company Galaxy Digital, Mike Novogratz, thinks the majority of crypto hedge funds could be headed toward dark days in the future.
Novogratz outlined his opinions while speaking at Piper Sandler Global Exchange & Brokerage Conference on Wednesday, predicting that two-thirds of the roughly 1900 crypto hedge funds in existence will go out of business due to the bear market.
The CEO attributes the crypto downtick to macroeconomic forces impacting the overall financial market. He says hedge funds will be forced to restructure as volume goes down.
A new survey from global accounting giant PricewaterhouseCoopers (PwC) indicates that digital assets are becoming an important element of traditional hedge funds as 38% now invest in the space. This is a more than 80% increase from one year ago when 21% of funds were invested in the space.
Explains PwC,
“Most traditional hedge funds getting into digital assets are still just dipping their toes – 57% have less than 1% of total [assets under management] in digital assets. But it is notable that for 20% of these funds, digital assets represent between 5% and 50% of AuM [assets under management].
Further, two-thirds of funds (67%) currently investing in digital assets intend to deploy more capital into the asset class by the end of 2022.”
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The post The Majority of Crypto Hedge Funds Will Go Out of Business, Predicts Galaxy Digital CEO Mike Novogratz: Report appeared first on The Daily Hodl.
