The proportion of conventional hedge funds investing in crypto belongings declined up to now 12 months although the long-term outlook stays constructive, in accordance to a brand new report by Massive 4 accounting agency PricewaterhouseCoopers (PwC).

The share of funds with crypto publicity fell to 29% from 37% in 2022, in response to the International Crypto Hedge Fund Report. No conventional hedge funds plan to lower their publicity this yr, it mentioned.

Greater than a 3rd (37%) of funds with out crypto publicity mentioned they’re curious, however are ready for the asset class to mature additional. That’s up from the 30% reported a yr in the past. Greater than half, 54%, mentioned they’re unlikely to put money into the following three years, in contrast with 41% within the earlier report.

General, the report speaks to a combined sentiment towards crypto from conventional monetary establishments, with “regulatory uncertainty” the watch phrases, as is commonly the case. PwC discovered that nearly 1 / 4 of hedge funds are reassessing their methods due to the regulatory atmosphere within the U.S., with 12% contemplating relocating from the U.S. to extra crypto-friendly jurisdictions.

“Regardless of market volatility, a fall in digital asset costs and the collapse of numerous crypto companies, funding in crypto-assets is anticipated to stay robust in 2023,” Jon Garvey, PwC United States’ international monetary companies chief, mentioned. “Conventional hedge funds, dedicated to the market in the long run, will not be solely rising their crypto-assets below administration, but additionally sustaining – if not rising – the quantity of capital deployed within the ecosystem.”