August turned out to be a good month for hedge funds targeting the cryptocurrency market. According to Eurekahedge, the profit of such financial structures increased by about 25%.
Moreover, in terms of profitability, cryptocurrency hedge funds have bypassed their competitors, who prefer to stay in the traditional asset market, reports the Financial Times.
At the moment, a very small proportion of large hedge funds are testing the potential of Bitcoin and other cryptocurrencies. Most of these financial structures are still focused on commodities, bonds, and other traditional instruments.
However, the growth of the crypto market, which has been observed since the end of last year, has forced some funds to invest part of their capital in it.
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June, on the other hand, was a bad month for crypto funds. Their profits fell 10% from a 7% increase in May, analysts at Eurekahedge said.
Henri Arslanian, head of PwC’s Hong Kong office, said that two years ago, almost no major hedge fund was interested in digital currencies. They feared that investing in innovative and volatile instruments could lead to losses for investors.
However, this year the situation has changed dramatically. Funds are now not only analyzing the potential of the crypto market but also starting to invest in products focused on Bitcoin and other digital currencies.
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Earlier this week, CoinShares published a report listing the most attractive cryptocurrencies for institutional investors. The first place was taken by Solana (SOL), which rose in price by more than 36% in a week.