The PWC report shows an increasing interest of crypto hedge funds in defi
The PWC report shows an increasing interest of crypto hedge funds in defi
- According to the PWC, crypto hedge fund continuously adopt the defi area.
- The annual Global Crypto Hedge Funds Report 2021 from PWC showed that the overall room with Crypto hedge finds of $ 2 billion rose to $ 3.8 billion in 2020 in 2019.
Crypto Hedge Funds show increasing interest in the area of decentralized finance (defi). A recently from PWC and the Alternative Investment Management Association (AIMA) underlined the increasing acceptance of defi products in crypto hedge funds.
PWC publishes the 3. Annual Global Crypto Hedge Fund Report
The report entitled "Annual Global Crypto Hedge Funds Report 2021" showed that the managed total assets (AUM) with Crypto Hedge Funds rose worldwide in 2020. PWC stated that the AUM rose from USD USD $ 3.8 billion in 2019 in 2020.
PwC added that the percentage of the crypto hedge funds, which manage more than $ 20 million, rose to $ 46 percent in 2020. Previously, crypto hedge funds with an AUM were 35 percent of over $ 20 million. PwC continued to talk about the defi growth in crypto hedge funds and wrote:
The average AUM for the funds examined this year rose from $ 12.8 million to USD $ 42.8 million, while the average AUM rose from USD 3.0 million. The media auction in the laying of the fund is $ 1 million, which indicates that the AUM usually rose by 15 times.
In addition, the report showed that 31 percent of the crypto hedge funds use decentralized stock exchanges (Dexs). Of the entire decentralized stock exchanges used by crypto hedge funds, uniswap is the most widespread. According to the PWC, uniswap is 16 percent of the use, followed by 1 inch, which corresponds to 8 percent, and sushiswap, which requires 4 percent.
Although the most important cryptocurrencies are declining, Defi has made profits supported. Chainlink (link) is involved in 20 percent of the hedge fund systems, Polkadot (DOT) to 28 percent and AAVE to 27 percent.
crypto hedge finds increase the appetite for defi
In addition, the PWC report says that crypto hedge funds are involved in the staggering, lending and borrowing of cryptocurrencies. The report contained an analysis that shows that 41.6 percent of the shares, 32.6 percent loans and 23.6 percent of loans.
more traditional financial institutions also show interest because crypto hedge funds explore the defi area. Pwc Crypto Leader Henri Arslanian commented:
Many financial institutions are still far from using decentralized applications, but try to be better trained and to understand the possible effects of Defi on the future of financial services.
The recent crash on the cryptom market, of which several cryptocurrencies were affected, led to a decline in the Total Value Locked (TVL) on all defi platforms. According to data compiled by Defi Llama fell from his all-time high of over $ 164 billion on May 10th. However, the blocked total value has now dropped to $ 104.37 billion. The Defi LLAMA data also showed that AAVE dominates the list with a blocked total value of $ 10.34 billion.
Apart from the crash of the cryptom market, the defi sector was also under pressure because hacker exploited huge funds. The Binance Smart Chain (BSC) has recently lost more than $ 200 million on hackers. Previously, the Defi protocol Bearn lost $ 11 million in StableCoin in an attack.
Source: Crypto-news-flash.com