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The Cayman Islands remains the top jurisdiction for crypto hedge funds

Updated: Apr 9

According to the fourth annual research report into the global Crypto Hedge Fund space, commissioned by PwC and Elwood Asset Management, the Cayman Islands maintained its place as the preferred jurisdiction for the domiciliation of hedge funds, by a wide margin.

The top Crypto domiciles were:

Cayman Islands - 49%

BVI - 13%

Gibraltar - 12%

United States - 10%

The Cayman Islands has maintained its position as the top location for crypto hedge funds to domicile, while the British Virgin Islands has overtaken the United States as the second most popular location. Each location saw its share of the market increase slightly year over year, Cayman Islands from 48% to 49% and British Virgin Islands from 11% to 13%. Gibraltar also surpassed the United States, despite both having a lower market share of 12% and 10% compared to 13% and 46% in the previous year respectively.

This year funds were asked to comment on what influenced their decision on crypto hedge fund domiciles and the most common responses were due to ‘crypto friendly’ (22%), ‘regulations’ (20%) and ‘fund friendly’ regulations (17%). The result is in line with expectations as many governments and authorities still take a rather unfriendly or indifferent approach towards the crypto industry, or rather are still trying to figure out the correct mix of regulation. The above responses suggest that crypto hedge funds aim to operate in domiciles that provide the least uncertainty regarding regulatory changes and government interventions, leaving them to focus on their investment activities instead.

Source: PWC Elwood Aima Crypto Hedge Fund Report

IMS is one of the longest established company management firms in the Cayman Islands. IMS is licensed by the Cayman Islands Monetary Authority to provide independent directors, company management and incorporation, mutual fund administration, captive insurance and trust services. For more information about our services, please contact us.

Disclaimer: this publication does not constitute legal or professional advice and should not be relied on as such.

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