A new report compiled and published by PwC Global Crypto Hedge Fund claims that the majority of its contemporaries in the market have continued to place their bets on crypto assets. A few days ago, one report issued by a financial enterprise claimed that hedge fund and asset management consultants are swaying in favor of the cryptocurrency acquisition. At present, the cryptocurrency market is at a bullish standstill.

The report by PwC analysts suggests that about two-thirds of the crypto hedge funds have continued to acquire more digital currency assets. In terms of percentage, it translates into 67% of the cryptocurrency hedge funds out of 1,800 in total.

Bitcoin and Ethereum are the Two Most Popular Cryptocurrencies Among Hedge Funds

The report published by PwC also postulates that despite the ongoing bear market, Bitcoin and Ethereum remain the two top cryptocurrency acquisitions among the crypto hedge funds. The main reason for the popularity of Bitcoin among investors is its proven status as a store of value. On the other hand, Bitcoin and Ethereum are also the two top currencies in terms of crypto market cap dominance.

Another survey conducted in 2022 in the crypto sector suggested that about 86% of hedge funds favor assets that are classified as a store of value. Meanwhile, around 78% of hedge funds vouched for DeFi tokens. On the other hand, 74% accounted for infrastructural advantages. The report also noted that hedge funds are focusing on diversification with cryptocurrencies.

The financial market analysts at PwC Global noted that the crypto hedge funds are updating and making their investment strategies more sophisticated in the light of past experiences. The report also noted that stablecoins like USDC and USDC are gaining attention among the crypto hedge funds.

On the flip side, the report pointed out issues like regulatory uncertainty as the main culprit in stopping the mass adoption of cryptocurrencies.

It is worth noting that 27% of the participants in the survey admittedly invested in UST tokens that blew up later on. It is interesting to notice that only 27% of the hedge funds claimed that they had not added cryptocurrencies yet to their portfolios, making them a minority of the group.

On the other hand, there are personalities like Mike Novogratz from Galaxy Digital, who recently claimed that about two-thirds of crypto hedge funds would collapse even though he placed big bets on UST.