PARIS, Nov 6 (Reuters) – Global hedge funds’ exposure to crypto markets is growing and more than half are now invested in the sector, with the U.S. government’s embrace of digital assets spurring interest, according to an industry report released on Thursday.
Fifty-five percent of hedge funds hold some crypto-related assets, up from 47% the year before, with funds allocating an average of 7% of their holdings to crypto, according to a survey of 122 investors and fund managers by the Alternative Investment Management Association (AIMA) during the first six months of 2025.
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Investments are relatively low. More than half of hedge funds with cryptocurrencies invest less than 2% of their assets in them, according to the AIMA and PwC report.
Cryptocurrency prices rose in 2025 as bitcoin hit a series of record highs, boosted by U.S. President Donald Trump’s support for the industry and his administration’s push for cryptocurrency-friendly regulations.
“The past year marked a turning point for U.S. crypto regulation,” the report said.
“The United States may finally be laying the foundation for long-term regulatory stability.”
Funds already invested in crypto say they plan to buy more over the next 12 months. A majority (67%) invest through crypto derivatives, which allow them to take a position on the price movement of cryptocurrencies without owning the underlying assets.
The funds studied by AIMA are responsible for investing approximately $982 billion in assets, the report said.
Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes and Hugh Lawson
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