Morgan Stanley, one of the biggest names in the financial world, has estimated that hedge funds have put around $2 billion dollars in cryptocurrency investments in 2017.
According to Business Insider, this figure was revealed in a note entitled “Bitcoin Decoded”, that the bank sent to its clients this week. Additionally, the bank explained that there are more than 100 new cryptocurrency hedge funds that have sprung up over the past 6 years. However, 84 of these have been launched in 2017.
The sudden increase in the number of crypto hedge funds coincides with the surge in price that Bitcoin has been experiencing since the beginning of the year, jumping from around $800 to $20,000 earlier this month.
Compiled with data from Morgan Stanley’s own research and Autonomous NEXT, the note helps bring into focus the surging interest from institutional investors at a time when bitcoin futures products have also been launched in CME Group and CBOE, two of the largest commodity exchange platforms in the U.S.
As reported here, one of these hedge funds belongs to legendary investor Bill Miller, chairman and chief investment officer at Miller Valued Partners. Miller detailed earlier this week that about 50% of the funds are now stored in Bitcoin and Bitcoin Cash.