Crypto Adoption Grows Among Hedge Funds: New Survey Shows 55% Participation In 2025
Throughout the 12 months, President Donald Trump’s crypto insurance policies have spurred a notable enhance within the adoption of digital property by numerous channels, together with exchange-traded funds (ETFs) and crypto-focused treasuries.
As a outcome, a current survey performed by the Alternative Investment Management Association (AIMA) and PwC revealed that the proportion of conventional hedge funds holding cryptocurrencies has climbed to 55%, up from 47% in 2024.
Heavy Crypto Exposure Among Hedge Funds
Despite the continued volatility in crypto markets, 47% of institutional buyers surveyed expressed that the present regulatory atmosphere, formed by Trump’s appointments of crypto-friendly company heads and the implementation of the GENIUS Act has inspired them to extend their allocations to digital property.
James Delaney, managing director of asset administration regulation at AIMA, commented on the findings, stating:
For most of those funds, regulatory uncertainty has been a serious barrier. This 12 months, these limitations are beginning to be eliminated. This 12 months’s report could mark a turning level in overcoming these challenges.
However, regulatory clarity isn’t the only real issue driving institutional curiosity in cryptocurrencies. The concern of lacking out (FOMO) on substantial market beneficial properties can also be a compelling motivator.
The survey highlighted that alongside conventional hedge funds, specialised fund managers with at the very least 50% of their property in crypto have emerged, with a number of new funds launched this 12 months.
Bitcoin Dominates, Solana’s Popularity Surges
Among the crypto-focused funds, Bitcoin (BTC) stays essentially the most generally held asset, intently adopted by Ethereum (ETH) and Solana (SOL). Notably, Solana noticed a surge in reputation this 12 months, with 73% of the funds now holding it, a marked enhance from 45% in 2024.
On common, hedge funds have allotted about 7% of their property to crypto, up from 6% the earlier 12 months, though over half of the respondents commit lower than 2%. Encouragingly, 71% of these surveyed indicated plans to extend their crypto publicity inside the subsequent twelve months.
Major corporations are additionally exhibiting curiosity on this house. Brevan Howard Asset Management has reportedly appointed a former government from Peter Thiel’s household workplace to steer a crypto-focused funding division.
Additionally, asset managers like Steven Cohen’s Point72 Asset Management and Elliott Investment Management have disclosed holdings in Bitcoin and Ethereum-linked ETFs. According to the AIMA survey, the proportion of respondents utilizing ETFs has risen to 33%, in comparison with 25% the earlier 12 months.
The survey indicated that the most well-liked entry technique to the digital asset market amongst managers is thru derivatives, with 67% of respondents using them, a rise from 58% in 2024. Spot buying and selling has additionally grown, rising to 40% from 25%.
Moreover, some asset managers are exploring the tokenization of their funds, much like initiatives by corporations like BlackRock. Over half of the survey members expressed curiosity on this method.
Lastly, the survey discovered that 43% of conventional hedge funds investing in crypto plan to reinforce or provoke their engagement with DeFi over the subsequent three years, with almost a 3rd believing that DeFi may disrupt their enterprise fashions.
Featured picture from DALL-E, chart from TradingView.com
