Greater than half of conventional hedge funds now have publicity to digital property, reflecting a gradual institutional shift towards the cryptocurrency market regardless of latest volatility, in keeping with a brand new survey.
A survey launched on Thursday by the Various Funding Administration Affiliation (AIMA) discovered that 55% of conventional hedge funds had publicity to digital property 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 property underneath administration. AIMA additionally discovered that on common, funds allocate 7% of their portfolios to crypto-related property. Nonetheless, most hedge funds preserve low publicity, with most investing underneath 2% in crypto. Nevertheless, 71% plan to extend their publicity over the subsequent 12 months.
Associated: US, UK joint process pressure to discover crypto regulatory collaboration
Practically two-thirds (67%) are investing in cryptocurrencies primarily by derivatives with out direct publicity to digital property. Nonetheless, the report additionally warns that the latest flash crash “uncovered vulnerabilities associated to extreme leverage and an absence of institutional-grade infrastructure” affecting derivatives.
US regulators set off shopping for spree
Practically half (47%) of respondents cited the evolving US regulatory setting as the rationale for growing their allocation to digital property. The findings comply with 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.
Associated: US regulators make clear guidelines for spot crypto buying and selling
Late October reviews additionally indicated that many senators are reportedly transferring to advance the invoice regardless of the continued US authorities shutdown.
The information adopted a warning by North Carolina Republican Senator Thom Tillis that Congress has just 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 interval of public remark in late September because it strikes towards implementation.
Journal: How crypto legal guidelines are altering internationally in 2025
