A steady move toward digital assets is being seen in the hedge fund industry, as an increasing number of managers are now incorporating crypto positions. Increased market activity and clearer signals from US authorities are the main drivers of this trend. The latest survey data confirms a large-scale transition, which is gradually anchoring crypto at the heart of traditional finance.
In brief
- More than half of hedge funds now hold exposure to crypto, driven by increased confidence and clearer regulatory signals in the United States.
- Average allocations remain limited, but the majority of managers plan to increase their exposure to digital assets in the next 12 months.
- Funds favor derivative products to access crypto markets, a sign of both prudence and an evolution in institutional frameworks.
- Regulatory advances in Washington are supporting the sector's expansion, as lawmakers refine asset classifications, custody rules and oversight of stablecoins.
Institutional confidence pushes hedge funds to increase their exposure
More than half of traditional hedge funds now hold some form of crypto exposure, according to a report from the Alternative Investment Management Association (AIMA). The survey reveals that 55% of funds owned digital assets in 2025, up from 47% the previous year. These results come from 122 managers representing $982 billion in assets under management.
Average allocations remain modest: funds devote around 7% of their portfolios to crypto-related assets. However, most have an actual exposure of less than 2%, although overall sentiment is improving. Approximately 71% of respondents plan to increase their allocations within a year, evidence of renewed institutional confidence.
Exposure mainly comes through derivatives rather than direct holdings. Nearly 67% of funds access the market through futures or options. AIMA notes that recent volatility, including a marked flash crash, has highlighted certain market fragilities, linked to excessive leverage and a still incomplete institutional infrastructure.
Hedge funds are also seeing a record influx of new capital, with total assets approaching $5 trillion in the third quarter of 2025. The rise in crypto prices, driven by several all-time highs in Bitcoin, has revived investor interest. The support shown by US President Donald Trump and his administration's desire to establish a more favorable regulatory framework for digital assets have further reinforced this positive sentiment.
Washington Fuels Regulatory Momentum
One of the main drivers of this increase in exposure comes from the evolution of the American regulatory framework. Nearly 47% of managers surveyed cite recent initiatives from Washington as the main reason for their increased engagement in crypto.
Recent developments include an overhaul of federal rules on digital assets and bipartisan work in the Senate to advance a market-structuring bill. Progress continues despite a temporary government shutdown, with lawmakers seeking to act before the election campaign freezes discussions.
In the midst of these regulatory changes, several points stand out:
- Clarify digital asset classifications.
- Establish clear guidelines for retention and reporting.
- Strengthen supervision of stablecoins and payment systems.
- Improve coordination between federal agencies.
- Accelerate deadlines for legislative action.
The latest updates also indicate progress on the stablecoin framework provided for by the GENIUS law, currently in the second phase of public consultation. Lawmakers caution, however, that Congress has a limited window to pass broader crypto regulation before political priorities shift.
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