In 2025, traditional hedge funds significantly expanded their presence in the digital asset market — 17% more funds now have cryptocurrency exposure compared to the previous year.
According to the annual report by AIMA and PwC, in 2025, 55% of traditional hedge funds invest in digital assets, up from 47% in 2024. On average, funds allocate 7% of their assets under management (AUM) to crypto instruments, and 71% plan to further increase this share over the next 12 months.
The study surveyed 122 participants, institutional investors and hedge funds from around the world, managing a combined total of $982 billion in assets.
Key investment drivers include:
- portfolio diversification (47%);
- market-neutral strategies (27%);
- potential for asymmetric returns (13%).
2025 became a turning point in attitudes toward digital assets due to major reforms in the U.S., including:
- the launch of Project Crypto by the Securities and Exchange Commission (SEC);
- the Office of the Comptroller of the Currency (OCC) authorizing custodial operations with digital assets;
- the adoption of the GENIUS Act, establishing regulatory rules for stablecoins.
These regulatory changes resulted in 47% of institutional investors increasing their crypto allocations, while traditional funds reported a 57% rise in readiness to invest in cryptocurrencies.
Infrastructure improvements also play a role — 41% of investors are willing to increase allocations if operational and compliance risks are reduced.
Crypto derivatives remain the most in-demand instruments — 67% of funds use them, reflecting a focus on hedging and capital efficiency. Spot trading grew from 25% to 40%, and the share of funds using ETFs and ETPs reached 33%.
A separate trend is the growth of tokenized assets. 52% of funds express interest, and 33% are already exploring tokenized fund share offerings. Key advantages include operational efficiency, improved liquidity, and broader investor access.
The average volume of crypto-assets under hedge fund management reached $132 million, nearly doubling compared to 2024, when it was $79 million. BTC remains the most popular crypto-asset — 86% of funds invest in it. Other leaders include:
- ETH — 80%;
- SOL — 73% (up from 45% in 2024);
- XRP — 37%.
Yield-generating strategies are also rising. 73% of funds generate returns through staking, including custodial staking (39%) and liquid staking (35%).
Among traditional funds, 43% plan to expand their presence in decentralized finance (DeFi) within three years, and 29% believe that DeFi solutions could significantly transform their operational processes. However, concerns remain, including legal uncertainty, smart contract vulnerability risks, and custodial issues.
Early in 2025, analysts from EY-Parthenon and Coinbase found that more than 59% of institutional investors are ready to allocate over 5% of AUM to cryptocurrencies and related products.
