More than half of hedge funds invested in crypto, global survey says

By Elizabeth Howcroft

PARIS (Reuters) -Global hedge funds' exposure to crypto markets is increasing, and more than half are now invested ​in the sector, with the U.S. government's embrace of digital ‌assets boosting interest, according to an industry report published on Thursday.

Fifty-five percent of hedge funds hold some ‌crypto-related assets, up from 47% the year before, with funds allocating on average 7% of their holdings to crypto, a survey of 122 investors and fund managers by the Alternative Investment Management Association (AIMA) in the first six months of 2025 ⁠found.

The investments are relatively small.‌ More than half of the hedge funds with crypto are investing less than 2% of their assets in it, the report by AIMA ‍and PwC said.

Cryptocurrency prices have risen in 2025 with bitcoin hitting a series of record highs, boosted by U.S. President Donald Trump's support for the industry and his administration's ​push for crypto-friendly regulations.

Regulators around the world have warned about risks to financial stability,‌ as crypto becomes more connected to mainstream finance.

"The past year has marked a turning point for US crypto regulation," the report said.

"The US may finally be laying the groundwork for long-term regulatory stability."

Funds that are already invested in crypto say they are planning to buy more in the next 12 months. A majority (⁠67%) are investing via crypto derivatives, ​which allow them to take a position on cryptocurrency ​price movements without holding the underlying assets.

These derivatives can introduce market risks, the report said, citing a flash crash in October which it said ‍"exposed vulnerabilities related ⁠to excessive leverage and a lack of institutional-grade infrastructure."

The funds surveyed by AIMA are responsible for investing around $982 billion of assets, the report said.

There has ⁠been an influx of new money into hedge funds, with capital hitting a record high of nearly ‌$5 trillion in the third quarter of 2025.

(Reporting by Elizabeth Howcroft; ‌Editing by Tommy Reggiori Wilkes and Hugh Lawson)

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