Bloomberg: The proportion of traditional hedge funds holding cryptocurrencies will rise to 55% this year from 47% in 2024

According to Foresight News, according to a new survey by the Alternative Investment Management Association and PricewaterhouseCoopers, the proportion of traditional hedge funds holding cryptocurrencies will rise to 55% this year from 47% in 2024. About 47% of institutional investors surveyed said the current regulatory environment encouraged them to increase their cryptocurrency allocations. The survey, conducted in the first half of 2025, included 122 institutional investors and hedge fund managers around the world with nearly $1 trillion in assets under management.


In addition to traditional hedge funds, the survey also interviewed a number of professional fund managers who have at least 50% of their assets allocated to cryptocurrencies. The survey found that the top asset held among crypto-focused funds is Bitcoin, followed by Ethereum and Solana, which has surged in popularity this year with 73% of funds holding it, up from 45% in 2024.


For most hedge funds, cryptocurrencies are just one investment strategy among many. On average, funds allocate 7% of assets under management to cryptocurrencies, up from 6% in 2024, the survey found. More than half of funds have allocations below 2%. But 71% of respondents said they planned to increase their cryptocurrency investments in the next 12 months. Some funds may have opened positions to profit from cryptocurrency volatility or to hedge short derivatives positions. Other funds may buy these ETFs to engage in basis trading, a popular strategy that profits from price differences between the spot and futures markets without directly trading Bitcoin. Cryptocurrency derivatives are the most popular way to enter the cryptocurrency market, with 67% of cryptocurrency investors using this method, up from 58% in 2024, according to the survey. The share of spot cryptocurrency trading, which involves the buying and selling of digital assets, also grew from 25% to 40%.

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