The latest study conducted by Intertrust Global, a prominent investment firm, revealed that most traditional hedge fund holders are planning to increase their exposure to virtual currencies.
It further highlighted that almost 98 percent of the CFOs’ of the top hundred hedge fund firms said they plan to invest more than seven percent of their assets in digital currencies over the next few years.
According to the survey, this ratio of investment would be valued at $312 billion. Meanwhile, as many as 17 percent of the survey respondents expressed their willingness to invest as much as ten percent of their holdings into virtual currencies, especially the world’s most famous crypto-token, Bitcoin.
The study comes as BTC is undergoing a major correction of more than 50 percent following reaching its all-time high of $65K in mid-April and amidst speculations of a major drop in its value, citing overvaluation. In addition to that, it comes as the United States recorded a record five percent inflation last month.
Previously, the anti-inflation rhetoric triggered the price hike in Bitcoin, followed by a fiscal stimulus by the Federal government in America. It prompted the local investors to turn towards safer investments, including stocks, gold, or silver. Among all these options, Bitcoin turned out to be the biggest gainer.
Interestingly, many hedge fund investors also benefited from last year’s boom in the crypto market, including Paul Tudor Jones, a prominent hedge fund billionaire, who revealed that he holds Bitcoin.
Besides that, the study also revealed that European hedge funds have quite less exposure to digital assets as it accounted for almost one percent, while in America, they stand at ten percent.