Every US Hedge Fund Expects To Hold 10% Of Assets In Crypto By 2026

A new survey revealed that hedge funds across the globe expect to considerably increase their crypto holdings within the next five years.

What Happened: According to a report from Financial Times, North American fund managers expect to have as much as 10.6% of exposure to cryptocurrency, while funds from Europe and the U.K. expected to have around 6.8% on average.

The findings come from a survey conducted by fund administrator Intertrust, where 100 hedge fund chief financial officers globally were asked about their appetite for cryptocurrency as an asset class.

Why It Matters: While the global average across executives stood at 7.6%, data group Preqin’s forecast suggests that this could equate to about $312 billion worth of assets in crypto if replicated across the sector.

“Hedge funds are well aware not only of the risks but also the long-term potential” of cryptos, said David Miller, executive director at Quilter Cheviot Investment Management.

In fact, the survey concluded that all the executives surveyed expected to have at least 1% of their portfolio in crypto, while 17% of those surveyed were open to allocations above 10%.

Read also: Why You Shouldn't Invest In Cryptocurrency, According To This Analyst

For the moment, however, hedge fund managers seem to be diversifying out of crypto and into other markets, according to a recent report from Forbes.

Their absence from crypto markets can be seen by a massive drop in open interest for both Bitcoin and Ethereum futures on the Chicago Mercantile Exchange.

Price Action: At the time of writing, Bitcoin was trading at $40,135, down 0.14% in the past 24-hours, while Ethereum was trading at $2,557.

Both assets recorded significant upward price movement over the weekend, rallying as much as 20% since Saturday.