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The 7th Annual Global Crypto Hedge Fund Report finds that, for the first time, just over half (55%) of traditional hedge funds now have some form of exposure to the asset class, up from 47% in 2024. While most maintain modest allocations of less than 2% of AUM, 71% plan to increase exposure over the next year.

When asked to highlight all the ways the evolving US regulatory environment affecting your strategy, those already invested in digital assets reported a greater willingness to invest (57%), growing investor interest (29%), improved access to banking services (14%) and expanding US operations (14%).

Crypto-focused fund managers share a similarly positive outlook. When listing all the strategy changes reacting to the new US regulatory environment, nearly half (47%) confirm rising investor demand, while 24% note clearer regulatory guidance spurring greater investment. A further 22% are scaling their US operations, and 16% are benefiting from improved banking access.

The evolving global regulatory and US policy landscape is also fuelling stronger institutional investor engagement with digital assets. Almost half (47%) of surveyed investors indicate that regulatory developments in the US are prompting them to increase allocations to the asset class.

Family offices, including multi-family offices, and high-net-worth individuals (HNWIs) remain the primary investor base for crypto hedge funds. However, participation from funds of funds has grown sharply.

The steady rise of tokenisation

Hedge funds and institutional investors are increasingly turning to regulated, tokenised products for liquidity management and collateral purposes, signalling a growing shift toward the adoption of blockchain-enabled solutions.

According to the AIMA and PwC's report:

• One-third (33%) of hedge funds are actively pursuing or exploring tokenisation initiatives, with the strongest interest seen in Asia and the Middle East.
• Just over half (52%) of all respondents express some level of interest in tokenised fund structures, citing broader investor access and operational efficiencies.
• Smaller managers (under US$1bn AUM) are more likely to explore tokenisation (37% vs. 24% of larger managers), while macro strategy managers show the highest enthusiasm (67%).

James Delaney, Managing Director, Asset Management Regulation, AIMA, said: "In recent years, our research has identified regulatory uncertainty as a major barrier to greater institutional adoption.

"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. As clearer rules and guidance emerge under the new US administration and market infrastructure continues to mature, confidence, capital and conviction in digital assets as an investable asset class are clearly on the rise.

"Since 2017, AIMA has been a global leader in advancing digital asset initiatives. At the heart of this work is our Digital Assets Working Group, a strategic partner to the industry and a dynamic network of senior industry professionals spanning the institutional digital assets ecosystem."

Albertha Charles, Global Asset & Wealth Management Leader, PwC UK, said: "The last year has seen the global hedge fund industry's engagement with crypto and digital assets accelerate. Exposure to crypto assets by hedge funds in 2025 hit 55% - up from 47% in 2024.

"As hedge funds look to generate long-term returns, hedge against risk, and diversify their portfolio allocations during lingering macroeconomic volatility and uncertainty, the rise in digital asset exposure highlights the impact of regulatory engagement in the last year. But while many leading financial centres have reformed their regulatory regimes, half of traditional hedge funds with no current crypto exposure continue to cite factors such as regulatory or tax uncertainty, and investment mandates, as a barrier to investing."

The report reflects the findings of a survey conducted by AIMA in the first half of 2025, involving 122 institutional investors and hedge fund managers worldwide representing an estimated aggregate of US$982 billion in AUM.

- Press release -

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