Private equity and hedge fund assets are the most likely to see relevant levels of tokenisation as the market begins to build, new global research from tokenisation platform Token City shows.

The PivotalPath Composite Index, a broad measure of overall hedge fund performance, was up 0.3 per cent in February, outperforming most major indices, according to data released by hedge fund research and intelligence specialist PivotalPath.

Major advances in the way trading and custody infrastructure tackles counterparty and exchange risk in digital assets are helping to assuage investor fears and will help further drive institutionalisation of this market further down the line, industry participants say.

New hedge fund launches rose the highest level since 2017 as total industry capital remained above the historic USD4 trillion milestone to begin 2022, according to the latest HFR Market Microstructure Report.

Automated document processing has already progressed far beyond many people’s expectations and the capabilities available provide hedge fund managers with a number of significant benefits. However, the human element remains key, and training an artificial intelligence (AI) program is crucial for investors to take full advantage of this technology’s power.

More than eight out of ten (84 per cent) professional investors believe digital assets will become mainstream, with just 3 per cent saying this will not happen and 13 per cent claiming it is too early to say. This is according to new research from London-based digital assets hedge fund Nickel Digital Asset Management (Nickel).

Cryptocurrency investing has not always gone hand-in-hand with ESG. Recent analysis suggests that these two major trends, which loom large over hedge funds and asset managers, are set for a head-on clash.

Regulation remains in sharp focus. Digital participants from across the financial markets spectrum are keen to dive in headfirst while others, partly due to a perceived supervisory gap, remain on the sidelines.

The hedge fund industry returned to inflows in January bringing in USD11.29 billion in new assets, 0.24 per cent of hedge fund industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.