Hedge Funds Increasing Crypto Exposure Amidst Shifting Regulations

A new survey reveals that a majority of traditional hedge funds, now with more than half holding exposure to digital assets, is taking significant steps toward integration into the cryptocurrency market. Despite recent market volatility, this shift reflects the growing institutional interest in cryptocurrencies, according to the Alternative Investment Management Association (AIMA). The 2025 survey reports a notable increase from 47% in 2024, with 55% of hedge funds now holding some form of exposure. While most funds maintain low exposure levels, allocating only an average of 7%, there’s significant anticipation for increased exposure over the next year, with 71% actively pursuing further investment in crypto assets.