More Than Half of Traditional Hedge Funds Now Hold Crypto Assets
Summary
According to the 7th Annual Global Crypto Hedge Fund Report by AIMA and PwC, 55% of traditional hedge funds now have exposure to digital assets, up from 47% in 2024, based on a survey of 122 managers controlling $982 billion in assets. While most funds currently allocate less than 2% to crypto, 71% plan to increase their investments over the next year, driven by diversification and alpha opportunities. Most exposure (67%) is gained through crypto derivatives, though spot trading has also grown. This institutional adoption is significantly accelerated by evolving US regulations, including the GENIUS Act for stablecoins and the SEC's 'Project Crypto,' which provide clearer frameworks. Pure crypto funds are also growing rapidly, favoring Bitcoin and Ethereum. Key barriers for non-investing funds remain mandate restrictions and regulatory uncertainty, but overall, digital assets are moving toward the mainstream of institutional investing.
(Source:Brave New Coin)