Access Restricted for EU Residents
You are attempting to access a website operated by an entity not regulated in the EU. Products and services on this website do not comply with EU laws or ESMA investor-protection standards.
As an EU resident, you cannot proceed to the offshore website.
Please continue on the EU-regulated website to ensure full regulatory protection.
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 is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. 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 may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
Latest
View all
Thursday, 13 August 2026
5 min
Wednesday, 12 August 2026
7 min
Wednesday, 12 August 2026
7 min
Thursday, 13 August 2026
Indices
Gold Price Today, August 14: XAU/USD Falls Below $4,350 as Profit-Taking Deepens
Thursday, 13 August 2026
Indices
SanDisk Stock Jumps Nearly 14% on Bullish 2030 Targets, Lam Research Gains Over 3%
Thursday, 13 August 2026
Indices
KOSPI Rises 2.7% Towards 7,000 as SK Hynix Gains 6% and Kioxia Jumps 7%
Wednesday, 12 August 2026
Indices
Gold Price Today, August 13: Gold Climbs Above $4,400 as Cooler US CPI Cuts Fed Hike Bets
EN
