EY is one of four major consulting and auditing companies in the world. It found that nearly four out of four hedge funds expect to grow their cryptocurrency exposure over the coming year. EY Global Alternative Fund Survey 2021 describes how alternative fund managers slowly take a steady place in investor portfolios, while digital assets remain present but in a limited way.
EY Survey: Hedge Funds Seeking Crypto Exposure
EY’s 2021 Global Alternative Fund Survey is a study that tracks the popularity and performance of alternative fund managers in the eyes of investors. It was compiled by EY. According to the survey, hedge funds were found to be one of most willing platforms for crypto assets. One in four hedge funds plans to explore cryptocurrencies over the next 12 months, according to the survey.
Investors had to navigate through a challenging year due to the coronavirus epidemic. This gave alternative fund managers a huge opportunity. However, cryptocurrency is not popular with a lion’s share of these fund managers currently, with just one in ten reporting having exposure to these assets, showing there is room for growth. The funds performed well in every case. 51% of investors polled reported that alternative investments had increased their value, exceeding or surpassing their expectations.
Alternative Investments with Digital Assets
The rise of digital assets (cryptocurrencies) as an important asset class, has made companies and fund managers turn their gaze to these as relatively profitable products in today’s convoluted markets. Although their actual involvement with cryptocurrency is not as large as for other non-regulated assets, it’s starting to make a name for themselves in this area.
This is despite a difficult current investment environment. Traditional investors are in a bind and many have sought to enter new markets through new strategies. Based on interviews with 54 investors and 210 managers, the survey provides insight into future alternative investments and what cryptocurrency could be.
Natalie Deak Jaros (EY Global Hedge Fund co-leader) spoke out about the significance of these decisions in the year at crossroads.
This research highlights our industry’s resilience as well as the important transformations investors and managers are working together to achieve. In 2021, the industry made significant investments to gain momentum around a variety of initiatives that will yield dividends over many years.
How do you feel about one out of four hedge fund managers looking to expand their cryptocurrency exposure next year? Leave a comment below.
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