Hedge fund strategies evolve with rising tokenization interest - London Business News | Londonlovesbusiness.com
Briefly

Hedge funds are intensifying their investments in crypto and alternative assets, signifying institutional acceptance of digital currencies. Notable allocations include Bitcoin, Ethereum, and emerging sectors such as DeFi and NFTs. Funds are using long-term strategies, active trading, and derivatives to manage risks associated with volatility. Tokenized real-world assets are projected to exceed USD 50 billion by 2025, enhancing liquidity and offering alternative investment opportunities. As the market shifts toward institutional deployments, hedge funds are likely to deepen their tokenized asset allocations, with the RWA market expected to reach USD 30 trillion by 2034.
Hedge funds are seeing increased allocations to Bitcoin, Ethereum, and sectors like DeFi and NFTs, using a mix of long-term holdings, active trading, and derivatives.
Tokenized real-world assets are projected to exceed USD 50 billion by 2025, creating improved liquidity and new investment opportunities for hedge funds.
Adoption of tokenised assets is shifting towards institutional-scale deployments, aligning with the blockchain's capabilities of faster settlement and lower transaction costs.
The real-world asset market is forecasted to reach USD 30 trillion by 2034, indicating a significant role for tokenized assets in future alternative investments.
Read at London Business News | Londonlovesbusiness.com
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