The 3rd Annual Global Crypto Hedge Fund Report 2021 estimated that the total assets under management (AuM) of crypto hedge funds globally increased to nearly US$3.8 billion in 2020 from US$2 billion the previous year.
The vast majority of investors in crypto hedge funds are either high-net worth individuals (54%) or family offices (30%).
Around a fifth of hedge funds are investing in digital assets (21%); the average percentage of their total hedge fund AuM invested in digital assets is 3%. More than 85% of those hedge funds intend to deploy more capital into the asset class by the end of 2021.
Around a quarter of hedge fund managers who are not yet investing in digital assets confirmed that they are in late-stage planning to invest or looking to invest (26%).
In terms of the main obstacles to investing, regulatory uncertainty is by far the greatest barrier (82%). Even those who do invest in digital assets cite it as a major challenge (50%). Client reaction/reputational risk is high (77%) as well as digital assets being outside the scope of current investment mandates (68%).
Over half of the respondents said that they don’t have enough knowledge of digital assets (64%).
64% of respondents said that if the main barriers were to be removed they would definitely start/accelerate their involvement/investment or potentially change their approach and become more involved.
- Nearly 80% of hedge funds are not currently investing in digital assets
- Of the 21% that are investing in digiatal assets, that investment only equates to 3% of AUM
- 85% of those hedge funds intend to deploy more capital into the asset class by the end of 2021
- Over half of the respondents said that they don’t have enough knowledge of digital assets (64%)
- Regulatory uncertainty is by far the greatest barrier to investing (82%)
CryptoFunds22 will help fill this knowledge gap for fund managers, wealth managers, family offices and HNWI investors.
CryptoFunds22 is a series of educational events taking place in London, Dubai and Abu Dhabi in early 2022.
The London event will take place on 30th March at No 6, Alie Street, E1 on the edge of the City of London with 200 attendees from family offices, fund managers and HNWIs.
The Dubai and Abu Dhabi events are planned for the 10th and 12th of May. Each will attract 300 attendees from family offices, fund managers wealth advisors and HNWIs.
A range of world thought leaders in DLT regulations and digital assets will offer their insights in individual speaker sessions and training workshops covering these main content streams:
- Regulatory certainty
- Risk management
- Support services
The 3rd Annual Global Crypto Hedge Fund Report 2021 identified Gibraltar as the No1 domicile for crypto funds in Europe. Gibraltar introduced the first DLT regulatory framework in the world in 2017. Since then, the Government of Gibraltar and the Gibraltar Financial Services Commission (GFSC) have worked to transform Gibraltar into an international centre of excellence for business working with DLT and in the crypto space.
It was therefore a logical step in the evolutionary process of Gibraltar’s financial services ecosystem for the crypto fund to emerge, allowing institutional investors and others to invest in digital assets with those with greater levels of experience and expertise.
The maturity of Gibraltar’s DLT ecosystem has natural synergies with the jurisdiction’s firmly established funds regime and this is proving to be powerfully attractive to fund promoters.