Consulting firm PwC remains optimistic that crypto-focused hedge funds will still grow amidst recent pronouncement by Galaxy Digital CEO Mike Novogratz that two-thirds of crypto hedge funds will go out of business. John Garvey, global financial services leader at PwC US, said the recent collapse of Terra vividly demonstrated the potential risks in digital assets. PwC surveyed funds in April 2022, just a month before the Terra ecosystem unravelled. At the time, the report said 27% of funds used UST and 49% had traded its sister cryptocurrency Luna (now called LUNC by its community). Among the many heavily invested in the original Luna cryptocurrency was Novogratz’s Galaxy. Novogratz attributed the collapse of the Terra blockchain - in which he and Galaxy were investors - to the broader macroeconomic factors rather than to flaws in the project.
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