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Hedge funds ramp up crypto exposure: 67% invest via derivatives as market matures
Major hedge funds are increasing crypto exposure via derivatives as they seek participation without custody risk.
A survey by Alternative Investment Management Association (AIMA) found that 67% of hedge funds now hold crypto exposure via derivatives rather than direct holdings.
These funds manage approximately US$5 trillion in total, with nearly US$982 billion represented in the survey’s pool. The shift reflects institutional caution about custody risk while maintaining crypto participation; respondents also plan to increase allocations in the next 12 months.
The report flagged elevated systemic risk due to high leverage and immature infrastructure.