By this point, we all know that investing in crypto has its own risk. The recent crash in the market was not something every investor can withstand. So, there has always been a debate about what is the perfect amount that one should allocate from one’s portfolio to crypto. Some say 1-2% is great, some believe it is 5%, and there are people recommending even higher numbers. But skeptics will obviously remain skeptical, which means hedge funds will surely proceed with caution while making any allocation.
What lies in the future?
The fund administrator intertrust conducted a recent survey. It showed that hedge funds might hold over 7% of their portfolio in crypto. Considering their total % of the allocation, the total allocation of crypto equates to $312 billion. Even investors and are expecting that they will see over a 10% allocation of their portfolio to crypto. It has been seen that North America is more likely to be more receptive towards the change while Europe will see much less exposure. The expected percentage is about 10.6% and 6.8%, respectively.
If this is the future and we are going to see such huge participation from hedge funds, then we have a very solid time ahead. People expect that Bitcoin will topple gold in the next 5-10 years, and that could really happen. At the same time, people will experience a kind of freedom with their money, like never before. Inflation is on the rise, and it is probable that Bitcoin and Ethereum could topple the dollar.
What are your thoughts on the 7% crypto allocation that hedge funds might have by 2026? And do you think that this is a very optimistic scenario? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.