More than half of traditional hedge funds now have exposure to digital assets, reflecting a steady institutional shift toward the cryptocurrency market despite recent volatility, according to a new survey.
A survey released on Thursday by the Alternative Investment Management Association (AIMA) found that 55% of traditional hedge funds had exposure to digital assets as of 2025. This is an 8% increase over the 47% reported in the 2024 survey.
The survey reportedly drew the participation of 122 hedge fund managers, representing $982 billion in assets under management. AIMA also found that on average, funds allocate 7% of their portfolios to crypto-related assets. Still, most hedge funds maintain low exposure, with most investing under 2% in crypto. However, 71% plan to increase their exposure over the next year.
Nearly two-thirds (67%) are investing in cryptocurrencies primarily through derivatives without direct exposure to digital assets. Still, the report also warns that the recent flash crash “exposed vulnerabilities related to excessive leverage and a lack of institutional-grade infrastructure” affecting derivatives.
US Regulatory Environment Fuels Investment
Nearly half (47%) of respondents cited the evolving US regulatory environment as the reason for increasing their allocation to digital assets. The findings follow major developments in Washington, including the Trump administration’s overhaul of US digital asset rules and ongoing Senate discussions over a crypto market structure bill led by lawmakers from both parties.
Late October reports also indicated that many senators are reportedly moving to advance the bill despite the ongoing US government shutdown.
The news followed North Carolina Republican Senator Thom Tillis warning that Congress has only a few months left to advance crypto legislation before election politics stall the process. The stablecoin payments framework, as outlined in the GENIUS Act, entered a second period of public comment in late September as it moves toward implementation.