Market Trends of US Hedge Fund Industry
Rise of the Crypto Hedge Funds in United States
Hedge funds are leaning more toward digital assets and the cryptocurrency sector. Hedge fund managers are analyzing crypto as a strong opportunity for growth. Their emerging interest is one of the reasons cryptocurrency values are rapidly growing. Globally, there are over three hundred crypto hedge funds. The total AUM of US crypto hedge funds roughly doubled over the past few years.
Asia-Pacific is Expected to Hold Significant Market Share
The emergence and popularity of digital assets have created new investment opportunities for hedge funds. Cryptocurrencies, blockchain technology, and related assets have offered the potential for high returns, diversification, and uncorrelated assets to traditional markets. The increased acceptance of digital assets by mainstream financial institutions and corporations has bolstered the interest of hedge funds. Major institutions, such as banks, asset managers, and insurance companies, have started offering or supporting cryptocurrency-related products and services. The rise in digital asset investing has necessitated the development of supporting technology and infrastructure. Hedge funds have been actively involved in developing trading platforms, custody solutions, and other infrastructure required for managing digital assets. This has created new business opportunities and revenue streams for hedge fund managers and service providers.
