Friday Nov 7 2025 13:00
2 min
The financial market is witnessing a notable shift as major financial institutions increase their exposure to digital assets. A recent survey by the Alternative Investment Management Association (AIMA) reveals that 55% of traditional hedge funds held digital asset investments as of 2025. This figure represents an 8% increase compared to the previous year, indicating a growing interest in cryptocurrencies despite recent volatility.
The survey included 122 hedge fund managers, representing $982 billion in assets under management. The survey also found that funds allocate an average of 7% of their portfolios to crypto-related assets. However, most hedge funds still maintain low exposure, with the majority investing less than 2% in cryptocurrencies. Notably, 71% of these funds plan to increase their exposure over the next year.
The majority of hedge funds (67%) prefer to invest in cryptocurrencies through derivatives without direct exposure to digital assets. However, the report warns that the recent flash crash "exposed vulnerabilities related to excessive leverage and a lack of institutional-grade infrastructure" affecting derivatives.
Approximately half of the participants (47%) cited the evolving regulatory environment in the United States as a reason for increasing their allocation to digital assets. These findings come after major developments in Washington, including the Trump administration's overhaul of US digital asset rules and ongoing Senate discussions on a crypto market structure bill led by lawmakers from both parties.
Reports in late October also indicated that many senators are moving to advance the bill despite the ongoing US government shutdown. This news followed a warning from North Carolina Republican Senator Thom Tillis that Congress has only a few months left to advance crypto legislation before election politics stall the process. The stablecoin payments framework, as outlined in the GENIUS Act, entered a second public comment period in late September as it progresses toward implementation.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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