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Not so fast: alternative investment managers skeptical of cryptocurrencies

FAIRFIELD, Iowa, October 23, 2017 — Cryptocurrencies appear to be taking the world by storm, but many alternative investment managers are unconvinced. A survey conducted by BarclayHedge finds that more than two-thirds of hedge fund managers have no intention of investing in cryptocurrencies.

The survey of 119 hedge fund managers and CTAs was conducted between September 11 and September 29, 2017. Managers were asked if they currently invest in or plan to invest in cryptocurrencies. Sixty-eight percent answered “No,” while 24% responded that they either currently invest or plan to invest within the next six months. A further 8% replied, “We’re studying the situation.”

“This survey allows us to distinguish between public perceptions and professional opinions of cryptocurrencies,” says Sol Waksman, founder and president of BarclayHedge. “Although there is a great deal of media attention on this area, they are still far from achieving broad acceptance as a medium of exchange or a storehouse of value.”

In the survey, hedge fund managers were also requested to select one of the three statements below which best reflected their point of view on cryptocurrencies, “In our opinion, cryptocurrencies…"

  • Are an exciting investment opportunity - 26%
  • Are a classic investment bubble - 37%
  • May be important but won’t have as big an impact as the hype suggests - 37%

While approximately one in four (26%) managers believe that cryptocurrencies are an exciting investment opportunity, 74% believe that cryptocurrencies are either a bubble or not as important as currently portrayed.

The survey is conducted monthly, with comprehensive results available here.

Sol Waksman is the founder and president of BarclayHedge. Waksman is an industry expert and experienced media source, providing perspectives on hedge fund and managed futures trends.

BarclayHedge is the global leader in providing independent, research-based information services to the alternative investment industry. Founded in 1985, Barclay currently maintains data on more than 6,600 hedge funds, fund of funds, and CTAs. No one has been in the business of collecting alternative investment data longer than BarclayHedge.

Institutional investors, brokerage firms, and private banks worldwide utilize BarclayHedge indices as performance benchmarks for the hedge fund and managed futures industries.