PwC, the world's second-largest consulting firm, surveyed both cryptocurrency and traditional hedge funds. And their managers agree on most of the key points. We've selected the most interesting takes from the survey.

When working with cryptocurrencies, hedge funds pay special attention to security. Most players use third-party services to store their holdings or manage cold wallets independently. Cryptocurrency exchange accounts are primarily used to execute transactions directly or to hold open positions in derivatives.

The events of 2022 have forced managers to rethink their market behaviour strategy, including mitigating the associated risks. Therefore, spot trading is leading by a significant margin in 2023.

But don't perceive hedge funds as rookie players who bought Bitcoin to hoard it. On the contrary, many of them (especially crypto hedge funds) use various opportunities, including loan programmes from decentralised exchanges (DEXs). The same managers who don't work with DEXs cited regulatory restrictions and cybersecurity risks as the reasons why they don't.

Bitcoin and Ethereum are the preferred cryptocurrencies because of the events of 2022. 48% of hedge funds claimed they were directly affected by the collapse of Terra (LUNA) and FTX. This was the reason behind this year's decreasing interest in altcoins. But 93% of those surveyed think that the bottom has formed and that the cryptocurrency market will see upward movement in late 2023.

But don't forget the long-standing confrontation between Bitcoin and Ethereum.

72% believe that Ethereum has zero chance of ever surpassing Bitcoin in terms of market cap.

The 28% of respondents who believe in the altcoin expect Ethereum to achieve superiority in the next 2 to 5 years.

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)