Hedge Funds Increase Crypto Stakes Amid U.S. Regulatory Tailwinds

More than half of hedge funds now hold crypto, signalling institutional acceptance though risk remains in derivatives use.

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Hedge Funds Increase Crypto Stakes Amid U.S. Regulatory Tailwinds

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Hedge Funds Increase Crypto Stakes Amid U.S. Regulatory Tailwinds
More than half of hedge funds now hold crypto, signalling institutional acceptance though risk remains in derivatives use.
A global survey released on 6 November 2025 found that 55% of hedge funds now hold cryptocurrency-related assets, up from 47% a year earlier. The average allocation is about 7% of AUM, though more than half of those funds invest less than 2% of their portfolios. The shift is attributed to rising digital-asset prices in 2025 and clearer regulatory frameworks in the U.S. The report also flagged risks from derivatives use, with 67% of crypto-exposed funds employing such instruments, potentially amplifying market volatility.
Sentinel