A survey has uncovered a worrisome trend among cryptocurrency hedge funds in the last three years. The survey noticed a pattern that has become prevalent, as about 75% of crypto hedge funds had challenges securing banking services. Banking Woes Highlight Discrimination Against Crypto The survey conducted by the Alternative Investment Management Association (AIMA) and cited by the Wall Street Journal highlights significant issues. Notably, out of 160 crypto-focused hedge funds sampled, about 120 experienced difficulties with their banking services. This represents approximately 75% of the respondents in the survey. The banking difficulties experienced were many and varied. These include vague communications account closures without clear reasons, among others. On the rare occasions when reasons were given, the financial institutions claimed reluctance to get involved in the volatile activities of the crypto market. Meanwhile, a sampling of 20 alternative investors from other sectors like real estate and private credit told a different tale. The report shows that none of such difficulties were experienced, suggesting it was crypto-specific. Crypto Executives Confirms Report In reacting to the development, Paul Grewal, Coinbase’s Chief Legal Officer, described it as systemic discrimination. Grewal queried the deliberate exclusion of crypto entities from accessing banking services, stating that organizations in other sectors were not subjected to such treatments. Another top crypto executive and Chief Investment Officer at crypto hedge fund Bitwise , Matt Hougan, considered it notable progress that the issue was openly deliberated upon. Hougan maintained that these discriminatory practices were common knowledge in the crypto community. However, these banks have often denied their actions in public. The Bitwise executive says it was a relief that the conversation had been elevated from the level of gaslighting those denied banking services. Optimism on the Horizon for Crypto Banking Industry experts project a shift on the crypto horizon once President-elect Donald Trump assumes office on January 20, 2025. The optimism stems from appointments and nominations that Trump has made ahead of his inauguration. The Securities and Exchange Commission (SEC) will have a pro-crypto Chair, Paul Atkins . Atkins will replace the current Chair, Gary Gensler. Additionally, David Sacks, appointed Artificial Intelligence and Crypto Czar, has hinted at the need to investigate restrictive banking practices in the crypto sector. Meanwhile, a crypto advocacy group, Digital Chambers Token Alliance, has charged the SEC with critically reviewing all ongoing lawsuits and investigations in the sector. The aim is to reset the crypto sector as the Trump administration prepares to take off. The post Crypto Hedge Funds Struggle as 75% Face Banking Woes: Report appeared first on TheCoinrise.com .
