Crypto Exposure Hits 55% Among Traditional Hedge Funds in 2025
Traditional hedge funds are increasingly embracing digital assets, with 55% now holding crypto exposure—up from 47% in 2024. The shift reflects growing institutional confidence, driven by evolving regulations and tokenization trends. Smaller and macro strategy managers lead the charge.
Allocations remain modest, averaging under 2% of AUM, but 71% of funds plan to increase their crypto holdings in the coming year. Regulatory clarity in the US and globally is a key catalyst, with 57% of hedge funds citing it as a primary motivator. Investor demand is also rising, particularly for crypto-specific funds.
The 7th Annual Global Crypto Hedge Fund Report highlights banking accessibility and market maturation as additional factors fueling adoption. While the sector still faces hurdles, the trajectory points toward sustained institutional participation.
