More than half of traditional hedge funds now have exposure to digital assets, reflecting a steady institutional shift toward the cryptocurrency market despite recent volatility, according to a new survey.
A survey released On Thursday the Alternative Investment Management Association (AIMA) found that 55% of traditional hedge funds will have exposure to digital assets by 2025. This is an 8% increase over the 47% reported in the 2024 survey.
The survey reportedly drew the participation of 122 hedge fund managers, representing $982 billion in assets under management. Aima also found that on average, funds allocate 7% of their portfolios to crypto-related assets. However, most hedge funds maintain low exposure, with most investing under 2% in crypto. However, 71% plan to increase their exposure in the next year.
Related: US, UK Joint Task Force to explore crypto regulatory cooperation
Almost two-thirds (67%) invest in cryptocurrencies primarily derivatives without direct exposure to digital assets. However, the report also warns that the recent flash crash “exposed vulnerabilities related to excessive leverage and a lack of institutional-grade infrastructure” affecting derivatives.
US regulators have triggered a buying spree
Nearly half (47%) of respondents cited the evolving US regulatory environment as a reason for their increased allocation to digital assets. The findings follow major developments in Washington, including Trump The administration’s overhaul of US digital asset policies and Senate discussion continues on a crypto market structure bill led by lawmakers from both parties.
Related: US regulators have clarified the rules for crypto trading
Reports in late October also indicated that several senators were reportedly moving to advance the bill Despite the ongoing US government shutdown.
The news followed a warning by North Carolina Republican Senator Thom Tillis that There are only a few months left in Congress To promote crypto legislation before election politics stalls the process. The StableCoin Payment Framework, as outlined in the Genius Act, entered a second public comment period In late September as it moves towards implementation.
