Tokenisation is another trend gaining momentum, with over half of hedge funds expressing interest in regulated, tokenised products for liquidity management and collateral purposes.
The strongest enthusiasm for tokenisation is found among smaller managers and those employing macro strategies, particularly in Asia and the Middle East.
Family offices and high-net-worth individuals remain the primary investor base for crypto hedge funds, though participation from funds of funds is rising.
Despite the rapid adoption, the report notes that regulatory and tax uncertainty, as well as restrictive investment mandates, continue to deter half of traditional hedge funds from entering the crypto space.
Meanwhile, the hedge fund industry itself is experiencing unprecedented growth.
