# Confidence in the blockchain market has recovered, and hedge funds are increasing their investment in crypto assets

According to the latest Global Crypto Hedge Fund Report released by the Alternative Investment Management Association (AIMA) and PricewaterhouseCoopers (PwC), 47% of traditional hedge funds have already entered digital assets, up from 29% in 2023 and 37% in 2022. Of these funds, 67% plan to maintain their existing crypto capital levels, while the rest plan to increase their investments by the end of 2024.

The report shows that although many funds initially entered the crypto space by trading tokens in the spot market, more and more sophisticated strategies are now being adopted. In 2024, 58% of funds will trade derivatives, up from 38% in 2023, while the proportion of funds trading in the spot market has dropped from 69% last year to 25% this year.

James Delaney, director of asset management supervision at AIMA, said that regulatory clarity around the world is boosting confidence in crypto assets. Despite the volatility of cryptocurrency prices, funds willing to get involved are often able to obtain profitable trading opportunities.