News & Insights

Cayman is the Jurisdiction of Choice for Crypto Funds

According to the 4th Annual Global Crypto Hedge Fund Report 2022, approximately 1 in 3 of “traditional” hedge funds surveyed are currently investing in digital assets, compared to 1 in 5 when we surveyed last year, with the Cayman Islands as the jurisdiction of choice for more than 50% of all new funds.

It was recently reported in the 4th Annual Global Crypto Hedge Fund Report 2022 that “Approximately one in three of “traditional” hedge funds surveyed are currently investing in digital assets, compared to one in five when we surveyed last year. The average allocation to digital assets by these funds measures 4% (a slight increase from 3% last year).”

This report also notes that two thirds of those hedge funds (67%) who are currently investing in digital assets intend to deploy more capital into the asset class by the end of 2022 and 29% of hedge fund managers who are not yet investing in digital assets confirmed that they are in late-stage planning to invest or looking to invest.  The report also states that the Cayman Islands is the jurisdiction of choice for more than 50% of all new funds.

This report reflects what we are seeing in the Cayman Islands in this market, with the majority of new funds having strategies in this sector and long-standing traditional funds opening up their strategy to this market also.

As the Cayman Islands is the most popular offshore jurisdiction for investment funds generally, and it has already experienced significant activity in this space, it is well positioned to meet this growing demand.

To learn more about the Rise in Crypto Funds in the Cayman Islands, see our article here as well as a full list of our Cryptocurrency Services here

Should you have any specific questions on this topic, feel free to reach out to your usual Stuarts attorney or contact Chris Humphries at chris.humphries@stuartslaw.com or Jonathan McLean at jon.mclean@stuartslaw.com .

Contact our experts for further advice

View profile for Chris HumphriesChris Humphries
Managing Director and Head of Funds
, View profile for Jonathan McLeanJonathan McLean
Partner and Head of Banking & Regulatory

This publication is for general guidance and is not intended to be a substitute for specific legal advice. Specialist advice should be sought about specific circumstances.