- Litecoin the unlikely champion as crypto hedge funds continue diversification
- Hedge funds keep finding new use cases for cryptos that don’t involve investment
- Crypto hedge funds are engaging in lending, staking and borrowing
Litecoin news today – According to a new report, Litecoin has been earmarked as the unlikely champion among altcoins when it comes to funds. According to a joint research paper published by PwC and Elwood Asset Management tagged the Annual Crypto Hedge Fund Report, the digital assets under the management of crypto hedge funds around the globe have doubled since 2019, to $2 billion. The report adds that hedge funds are increasingly conducting staking, lending, and crypto borrowing. Staking now accounts for 42% of non-investments activities for hedge funds. The authors of the report say a study of hedge funds in Q1 this year, found that altcoin winners have begun to emerge with LTC leading the charge.
Litecoin News Today – Litecoin is the Top Traded Altcoin
According to the publishers of the study:
“Litecoin was reportedly mentioned as one of the top traded digital assets despite having a relatively small market cap when compared to other altcoins. The same applies to Zcash and Ethereum Classic to a lesser extent.”
Litecoin is currently the number ranked 7 largest digital assets by market capitalization, but shares the third place with the digital asset XRP, as one of the most traded digital assets. Regardless of this, when asked to provide their list of the top five traded altcoins based on daily volume, 67% of the fund managers mentioned Ethereum. The authors of the study also say that there have been many changes in the ways in which crypto hedge funds (as well as their conventional counterparts) use crypto derivatives.
Litecoin (LTC) Price Today – LTC / USD
Litecoin LTC Price Prediction – There Has Been a Similar Rise in Cryptocurrency Lending
The study adds that:
“In the past year, there have been further developments in crypto lending. For example, some centralized and decentralized exchanges are now offering cryptocurrency lending and marginal trading features. Hence, interest rate and flash loan arbitrage have become more and more common.”
This has some interesting effects, “meaning we are seeing a nearer correlation between investment strategies at both crypto and traditional hedge funds.” According to Henri Arslanian, PwC’s Global Crypto Leader, investors are starting to take heart from the activities of regulators. He expects the crypto hedge fund sector to grow significantly as investing in crypto funds might be “an easy and familiar entry point for institutional investors looking to join the space.” He added that “experienced finance professionals” keep“entering the crypto space as the sector continues to evolve and mature” which provides “comfort to institutional investors and regulators.”