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In 2020, the assets under management of encrypted hedge funds will reach 3.8 billion US dollars, and the demand for DeFi is growing



On Monday, PricewaterhouseCoopers, investment firm Elwood Asset Management, and alternative investment management association AIMA jointly released the 2021 Global Crypto Hedge Fund Report. The report provides an overview of the global crypto hedge fund situation, surveying some traditional hedge funds.

The report estimates that the total assets under management of global encrypted hedge funds will reach US$3.8 billion in 2020, nearly doubling from US$2 billion in 2019. Among them, the proportion of funds with assets under management exceeding US$20 million accounted for 46%, compared with 35% in 2019. Among the funds surveyed, the average AUM was $428 billion, an increase of $300 billion compared to 2019.

Data: The AUM of encrypted investment products will drop by 55% in 2022: Jinse Finance reported that according to data from the research company CryptoCompare, the asset management scale (AUM) of digital asset investment tools in 2022 will lose more than 55% compared to the peak at the beginning of the year. Average weekly net outflows from digital asset investment vehicles hit nearly $10 million in December, the highest level since June 2022 amid the FTX crash and rumors of possible problems with Binance. Among them, the asset management scale of Bitcoin and Ethereum investment tools has dropped by 61% and 62.1% from the peak in March 2022 and April 2022, respectively. Additionally, traders are most interested in crypto investment products in the form of ETFs. In December 2022, AUM represented by ETFs increased by 5.96% to US$1.78 billion, accounting for 9.11% of the total market share. [2022/12/28 22:12:11]

In terms of investor types, high-net-worth individuals and family offices accounted for 54% and 30% respectively, and more than half of crypto hedge funds set the investment threshold at $5 million or less, while the average investment threshold was $11 million.

Bloomberg Strategist: Market Volatility in 2022 Shows Bitcoin's Persistence in the Encrypted Market Revolution: On January 21st, Bloomberg Senior Commodity Strategist Mike McGlone said that recent market volatility in 2022 highlights Bitcoin's strength in current figures. The role of the bourgeois revolution.

McGlone said on Twitter that this volatility demonstrates the reliability of bitcoin and ethereum in crypto-dollar trading, which is key to the industry's growth.

He said capital has flowed in and out of both assets, showing the extent of the expansion of the cryptocurrency economy. McGlone further noted that progress in dollar trading in the space is critical to the growth of the cryptocurrency space. (Finbold)[2022/1/21 9:04:42]

Zhu Xiaohu from GSR Ventures: 2021 will witness the advent of the era of the Bitcoin standard: Zhu Xiaohu, managing director of GSR Ventures, quoted a newsletter titled "Bitcoin breaks through 52,000 US dollars per piece, the world's largest asset management company enters the market" in WeChat Moments, He also said that 2021 will witness the advent of the Bitcoin standard era. Previously, Zhu Xiaohu from GSR Ventures stated in his WeChat circle of friends that if the Georgia Democratic Party wins the next two seats, BTC is estimated to be worth 50,000 US dollars. [2021/2/18 17:26:18]

In terms of fund strategy, activity, and trading, the most common crypto hedge fund strategy is quantitative trading (37%), followed by long-short (28%), long-term long (20%), and mixed strategies (11%).

Most crypto hedge funds trade Bitcoin (92%), followed by Ethereum (67%), Litecoin (34%), LINK (30%), DOT (28%) and AAVE (27%).

TRON 2021 Global DeFi Hackathon Developer’s Ten Million Dollar Voyage Plan Officially Launched: According to the latest official news, the TRON 2021 Global DeFi Hackathon Developer Ten Million Dollar Contest has officially started today, and the plan for this developer contest is " TRON DeFi Entrepreneur Ecological Alliance's 120 million USD support plan to encourage more entrepreneurs and development teams to participate in the ecological construction of TRON DeFi. The total prize pool of the competition is 10 million US dollars.

In addition to the bonus, there is also a $50,000 developer Sun Ge encouragement fund, as long as you sign up for the competition and the project meets the evaluation criteria (the final evaluation score is more than 80 points), you can receive it. The participating directions can be: Lending, DEX, Payment, Protocol Interface, Infrastructure, Analysis&Visualization, Stablecoin, Insurance, NFT, and Mining. In the future, the TRON Global Defi Hackathon Developer Ten Million Dollar Bounty Competition will be held as an annual developer gathering and will continue to be held every year to continue to stimulate the community's entrepreneurial passion. The registration period is from February 5th to February 28th. For details of the registration method, click the link in the original text. [2021/2/3 18:49:18]

About half of crypto hedge funds trade derivatives (56%), but short selling has decreased significantly, from 48% to 28% in 2020. Crypto hedge funds are also involved in crypto staking (42%), lending (33%) and borrowing (24%).

In terms of management, the percentage of crypto hedge funds using independent custodians fell from 81% to 76% in 2020. The percentage of boards with at least one independent director fell from 43% to 38%. The percentage of crypto hedge funds using third-party research rose from 38% to 47%.

In terms of geography, crypto hedge funds tend to be located in the same jurisdiction as traditional hedge funds, with the top three being the Cayman Islands (34%), the United States (33%) and Gibraltar (9%). The most frequent destination for crypto hedge fund managers is the US (43%), followed by the UK (19%) and Hong Kong (11%).

According to the report, about one-fifth of traditional hedge funds invest in digital assets (21%). The average proportion of their total hedge fund assets under management invested in digital assets is 3%, and more than 85% of hedge funds intend to allocate more capital to this asset class by the end of 2021.

About a quarter of hedge fund managers who have not yet invested in digital assets confirmed that they are in the later stages of planning or seeking investment (26%).

In terms of major barriers to investing, regulatory uncertainty is by far the biggest barrier (82%), and even those investing in digital assets see it as a major challenge (50%). More than half of respondents said they don’t know enough about digital assets (64%).

This year’s research suggests that there are currently 150 to 200 active-zce crypto hedge funds, the report wrote. Four-fifths of them were launched between 2017 and 2020 (81%), according to the findings.

Decentralized finance (DeFi) has seen phenomenal growth in 2020. From April 2020 to April 2021, the transaction volume on the decentralized exchange platform increased by more than 90 times.

The data shows that 31% of crypto hedge funds use decentralized exchanges, with Uniswap being the most widely used exchange (16%), followed by 1inch (8%) and SushiSwap (4%).

Reports suggest that crypto hedge fund managers remain bullish on Bitcoin. Most predict prices between $50,000 and $100,000 (65%), with another 21% predicting prices between $100,000 and $150,000.


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