This is both terrifying and scary.

Hedge funds might be able to push for developments going in one direction that benefits them instead of promoting best technical solutions. Ethereum going for Proof of Stake might open the door for them to manipulate it, or maybe it is preparing to minimize their power as no hedge fund can reach enough power.

I'm not entirely sure, but it seems that it will make the market very bullish. And if one fund cashes out suddenly, it may create a downward chain reaction that will be scary.

Plus if they start using derivatives that bet on the fall of a crypto coin, the scenario is set for a nightmare.
It's is going to be interesting how the communities and the coins react to this.