More than half of traditional hedge funds now hold digital assets, according to new research from the Alternative Investment Management Association (AIMA) and PwC.
The firms’ 7th Annual Global Crypto Hedge Fund Report reveals that 55% of traditional hedge funds have crypto exposure in 2025, up from 47% last year. The survey, which polled 122 institutional investors and hedge fund managers managing approximately $982 billion, points to regulatory clarity as a key driver of this growth.
Nearly half (47%) of institutional investors credit the evolving US regulatory environment for encouraging them to increase their digital asset allocations. Among funds already invested in crypto, 57% report greater willingness to invest due to regulatory developments, while 71% plan to boost their exposure over the next year.
The tokenization of assets is also gaining momentum, with 52% of hedge funds expressing interest in tokenized fund structures. Smaller managers and those in Asia and the Middle East are leading this trend, citing operational efficiencies and broader investor access as key benefits.
“This year’s survey marks a turning point, with digital assets now moving from the margins toward the mainstream of hedge fund and institutional investing,” said James Delaney, AIMA’s Managing Director of Asset Management Regulation.
Family offices and high-net-worth individuals remain the primary investors in crypto hedge funds, though participation from funds of funds has grown significantly. Most hedge funds maintain modest crypto allocations of less than 2% of assets under management, suggesting there is room for further growth as regulatory frameworks continue to develop.
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