3rd Annual Global Crypto Hedge Fund Report 2021 released by PwC provides an overview of the global crypto hedge fund landscape and offers insights into both quantitative elements (such as liquidity terms, trading of cryptocurrencies, and performance) and qualitative aspects, such as best practice with respect to custody and governance.

6 KEY FINDINGS

1. Size of the market and AuM The total assets under management (AuM) of crypto hedge funds globally increased to nearly US$3.8 billion in 2020 from US$2 billion the previous year.

2. Performance and fees The median crypto hedge fund returned +128% in 2020 (vs +30% in 2019). The median best performance strategy in 2020 was discretionary long only (+294%) followed by discretionary long-short (+129%), multi-strategy (+114%) and quant (+72%).

3. Investor type and average ticket size The vast majority of investors in crypto hedge funds are either high-net worth individuals (54%) or family offices (30%). The median ticket size is US$0.4 million, while the average ticket size is US$1.1 million.

4. Non-crypto focused (traditional hedge funds) Around a fifth of hedge funds are investing in digital assets (21%); the average percentage of their total hedge fund AuM invested in digital assets is 3%. More than 85% of those hedge funds intend to deploy more capital into the asset class by the end of 2021. Around a quarter of hedge fund managers who are not yet investing in digital assets confirmed that they are in late-stage planning to invest or looking to invest (26%). In terms of the main obstacles to investing, regulatory uncertainty is by far the greatest barrier (82%).

5. Fund strategies, activities and trading The most common crypto hedge fund strategy is quantitative (37% of funds), followed by discretionary long/short (28%), discretionary long-only (20%), and multi-strategy (11%). Most crypto hedge funds trade Bitcoin ‘BTC’ (92%) followed by Ethereum ‘ETH’ (67%), Litecoin ‘LTC’ (34%), Chainlink ‘LINK’ (30%), Polkadot ‘DOT’ (28%) and Aave ‘AAVE’ (27%).

6. Location Funds tend to be domiciled in the same jurisdictions as traditional hedge funds, with the top three being the Cayman Islands (34%), the United States (33%) and Gibraltar (9%). The most common location for crypto hedge fund managers is the United States (43%), followed by the United Kingdom (19%) and Hong Kong (11%).

The report is available HERE.


Publié le 27 mai 2021