A new survey by the Alternative Investment Management Association (AIMA), conducted in collaboration with PwC, reveals that 55% of hedge funds invested in cryptocurrencies during the first half of 2025 - up from 47% the previous year.
The survey, which polled 122 hedge funds worldwide, found that the average crypto allocation stands at around 7%, although more than half of these funds invest less than 2%. The main drivers: rising cryptocurrency prices in 2025 and an increasingly crypto-friendly US regulatory environment. However, the report also warns of risks such as high leverage and insufficient market infrastructure.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
Survey details and market significance
According to Reuters, the hedge funds surveyed collectively manage around USD 982 billion in assets. Overall hedge fund capital reached a record of nearly USD 5 trillion in the third quarter of 2025. The findings indicate that crypto is increasingly being accepted by traditional asset managers - particularly through derivatives: 67% of crypto-invested funds use derivatives instead of holding cryptocurrencies directly.
The US government under Donald Trump and recent regulatory developments are cited as accelerators. At the same time, the report references an October 2025 flash crash, during which market participants suffered losses due to excessive leverage and a lack of institutional infrastructure.
Regional distribution and preferred investment types
The AIMA study shows that more than 60% of crypto-active hedge funds are based in North America, followed by Europe with 25% and Asia with 10%. US-based funds in particular benefit from clearer regulation through recent legislative initiatives such as the CLARITY Act and the Stablecoin Innovation Framework. Most funds favor liquid, established assets - Bitcoin (BTC) and Ethereum (ETH) together account for more than 80% of allocations. In addition, 45% of surveyed funds said they plan to invest in tokenized bonds and real-world assets (RWA) once regulatory frameworks are fully implemented.
The data suggest that cryptocurrencies have entered the portfolios of professional investors - albeit with a limited share. The growing use of derivatives points to strategic positioning rather than speculative mass participation. Nevertheless, integrating crypto into traditional financial structures remains risky: infrastructure and liquidity gaps, along with regulatory uncertainty, can undermine the stability of these assets. For crypto projects, however, the survey serves as a signal of improving institutional access.
