Crypto Hedge Funds Rise to 55%, 71% Plan Increased Exposure
The AIMA and PwC Seventh Annual Global Crypto Hedge Fund Report shows that 55% of traditional hedge funds held digital assets in 2025, up from 47% in 2024. Improved regulatory clarity under the GENIUS Act and US crypto-friendly policies drove 47% of managers to boost allocations last year. Crypto hedge funds keep allocations modest, with an average of 7% and over half investing less than 2% of their portfolios. Seventy-one percent plan to increase crypto exposure within 12 months, citing portfolio diversification, market-neutral alpha and asymmetric returns.
The survey covers 122 fund managers overseeing $980 billion in assets. Access methods include crypto derivatives (67%), spot trading (40%), exchange-traded products (33%) and tokenized assets or related equities (27%). More than half of managers support tokenizing their funds, and 43% aim to expand DeFi involvement.
Pure crypto hedge funds grew too, with average AUM rising to $130 million in 2025. Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and XRP (XRP) are the top holdings. Yield strategies, such as custodial staking (39%) and liquid staking (35%), remain popular. Institutional interest is climbing: fund-of-funds participation hit 40%, and pension and sovereign wealth fund allocations rose to 20%.
Bullish
Rising adoption of digital assets by traditional hedge funds signals increased institutional demand, which is bullish for major cryptocurrencies. In the short term, allocations via derivatives, spot trading and ETPs could drive trading volumes and price volatility. Over the long term, regulatory clarity and growing support for tokenization and DeFi involvement establish a structural foundation for sustained inflows. The planned increases by 71% of funds and rising pension and sovereign wealth allocations point to deeper market liquidity and stability, supporting upward price trends.