A new report by AIMA and PwC reveals a defining shift in institutional investing:
➡️ 55% of hedge funds globally now hold crypto-related assets — up from 47% a year ago.
➡️ On average, funds allocate 7% of their portfolios to crypto, though more than half invest under 2%.
🔹 A Turning Point for Regulation and Confidence
2025 marks a new phase for crypto legitimacy.
“The past year has marked a turning point for U.S. crypto regulation. The U.S. may finally be laying the groundwork for long-term stability,”
the report notes.
Bitcoin’s record highs and President Trump’s pro-crypto stance have accelerated global hedge fund participation, bridging digital assets into mainstream finance.
However, regulators warn of new systemic risks as crypto intertwines with traditional markets — particularly as 67% of funds now trade via crypto derivatives, amplifying leverage exposure.
🔹 The Scale Behind the Shift
The 122 funds surveyed manage a combined $982 billion AUM, part of a hedge fund industry that just surpassed $5 trillion globally — its highest on record.
These findings underscore an inflection point: crypto has evolved from speculative asset to strategic portfolio component, shaping how institutional capital defines diversification and alpha generation.
🔹 The Takeaway
Institutional adoption is no longer a theory — it’s market reality.
The question for 2026 isn’t “will funds enter crypto?” but “how deep will they go?”
As hedge funds scale exposure, risk management, derivative discipline, and regulatory clarity will define the next cycle of digital asset maturity.