Survey: 59% of US Funds Plan to Invest in Cryptocurrencies Within a Year

According to a survey by the law firm Barnes & Thornburg, 59% of fund managers expressed readiness to increase the share of cryptocurrencies in client portfolios. This was reported by Cointelegraph.

“This is more than last year, when most stated that the state of the digital asset market had a significant negative impact on their organization,” the report notes.

The study surveyed 138 executives from private equity, venture capital, hedge funds, and investment banking firms across various sectors of the US economy.

84% of respondents expect an increase in private investments in digital assets during the specified period.

26% of participants indicated a decreased likelihood of investing in such products due to volatility (46%), instances of fraud (43%), and platform collapses (43%).

“A year and a half after the FTX bankruptcy, we are witnessing a significant recovery of digital gold and other cryptocurrencies. The approval of a SEC bitcoin–ETF is a major event for the industry and could spur investments in private funds and other unregulated products,” said Scott Bales, a partner at Barnes & Thornburg.

The key concern for respondents remains profitability (54%). Financing conditions are less significant—50% compared to 23% last year—due to increased barriers to capital raising.

By the end of the first quarter of 2024, 13 of the 25 largest hedge funds in the US held bitcoin-based products, according to River.

In May, BlackRock’s head of digital assets, Robert Mitchnick, stated expectations of a new wave of inflows into spot BTC-ETFs driven by institutional participation.

In April, a similar forecast was presented by Bernstein analysts.