Hedge funds creep further into crypto: AIMA
Additionally, the research found that hedge funds are increasingly using derivatives to get their exposure to crypto and are turning away from spot trading.
“This signals growing sophistication in hedge fund strategies,” it said.
The most popular strategies among traditional hedge funds include market-neutral and discretionary long-only strategies, the report noted.
“Market-neutral strategies are often favored for their ability to manage risk while seeking returns in the fluctuating digital assets market,” the report said. “Although discretionary long-only strategies lack the volatility dampening characteristics of market-neutral portfolios, they can capitalize on the upside potential of innovative blockchain…
