Crypto hedge funds had $3.8 billion in assets under management in 2020. Chainlink, Polkadot and Aave tokens proved popular.

Crypto hedge funds managed nearly $3.8 billion in 2020, up from $2 billion in 2019, and are showing a taste for decentralized finance (DeFi), according to a new report from PwC and the Alternative Investment Management Association (AIMA).Released Monday, the third annual Global Crypto Hedge Fund Report, co-authored by Elwood Asset Management, shows that 31% of crypto hedge funds use decentralized exchanges (DEXs), with Uniswap being the most widely used (16%), followed by 1inch (8%) and SushiSwap (4%).Meanwhile, DeFi-specific tokens are on the rise: oracle service Chainlink’s LINK (-13.93%) was included in 30% of hedge fund investments, with interoperability protocol Polkadot’s DOT (-17.87%) and lending platform Aave’s AAVE (-10.84%) making up 28% and 27%, respectively.