Greater than half of conventional hedge funds now have publicity to digital belongings, reflecting a gradual institutional shift towards the cryptocurrency market regardless of current volatility, in keeping with a brand new survey.
A survey released on Thursday by the Various Funding Administration Affiliation (AIMA) discovered that 55% of conventional hedge funds had publicity to digital belongings as of 2025. That is an 8% enhance over the 47% reported within the 2024 survey.
The survey reportedly drew the participation of 122 hedge fund managers, representing $982 billion in belongings underneath administration. AIMA additionally discovered that on common, funds allocate 7% of their portfolios to crypto-related belongings. Nonetheless, most hedge funds keep low publicity, with most investing underneath 2% in crypto. Nevertheless, 71% plan to extend their publicity over the subsequent 12 months.
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Almost two-thirds (67%) are investing in cryptocurrencies primarily by way of derivatives with out direct publicity to digital belongings. Nonetheless, the report additionally warns that the current flash crash “uncovered vulnerabilities associated to extreme leverage and an absence of institutional-grade infrastructure” affecting derivatives.
US regulators set off shopping for spree
Almost half (47%) of respondents cited the evolving US regulatory surroundings as the rationale for rising their allocation to digital belongings. The findings observe main developments in Washington, together with the Trump administration’s overhaul of US digital asset guidelines and ongoing Senate discussions over a crypto market construction invoice led by lawmakers from each events.
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Late October studies additionally indicated that many senators are reportedly transferring to advance the bill regardless of the continuing US authorities shutdown.
The information adopted a warning by North Carolina Republican Senator Thom Tillis that Congress has only a few months left to advance crypto laws earlier than election politics stall the method. The stablecoin funds framework, as outlined within the GENIUS Act, entered a second period of public comment in late September because it strikes towards implementation.
Journal: How crypto laws are changing across the world in 2025
