“Traditional hedge funds are returning to digital asset investing after last year’s drop-off, and they are doing so in increasingly sophisticated ways,” notes the sixth annual study of when and how hedge funds invest in digital assets (Report) conducted by the Alternative Investment Management Association (AIMA) and PwC. The study explored funds’ trading strategies and venues; use of derivatives, stablecoins and bitcoin exchange traded products; institutional investor interest; trends in tokenization; key risks to growth of the digital asset ecosystem; barriers to entry; and needed infrastructure improvements. “Given recent market activity, the industry finally appears ready to move past the events of 2022, which saw several high-profile fraud cases and a general lack of maturity across the wider digital assets landscape,” AIMA managing director Tom Kehoe told the Hedge Fund Law Report. This article discusses the key takeaways from the Report, with additional commentary from Kehoe. See “Crypto Hedge Funds – and Interest in Digital Assets Among Traditional Funds – Increase, According to Study” (Jun. 24, 2021).