We are seeing an increase in traditional hedge funds deploying capital towards digital assets, such as Bitcoin and Ethereum. These tradfi hedge funds benefit greatly from seeking advisement and management from registered investment advisors, such as Kingsly Capital, that specialize in digital asset investing.

Many funds—as well as family offices, institutions, and high-net-worth individuals—believe that blockchain technology will ultimately generate big profits similar to the dotcom boom of the early 2000s, which produced companies like Amazon, Google and Ebay.

Of traditional hedge funds surveyed by PwC, 38% are already investing in digital assets, compared to 21% a year ago.

“The recent collapse of Terra vividly demonstrated the potential risks in digital assets,” said John Garvey from PwC. “There will continue to be volatility, but the market is maturing and with that is coming not only many more crypto-focused hedge funds and higher AuM, but also more traditional funds entering the crypto space.”

This year, Kingsly Capital has seen a sharp rise in demand for its crypto fund, Kingsly Digital Assets Fund, and also for its separately managed accounts (SMAs) that invest in Bitcoin, Ethereum and other digital assets.

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