Overview
- The survey of 122 managers finds 55% of hedge funds hold crypto, with average allocations near 7% and most crypto adopters keeping stakes below 2%.
- Two-thirds obtain exposure via derivatives, with the report citing an October flash crash as evidence that leverage and thin infrastructure can magnify risks.
- Use of crypto ETFs has risen to 33% as access broadens beyond spot markets, while more than half expressed interest in tokenizing traditional funds.
- Funds already invested say they expect to increase crypto holdings over the next 12 months, reflecting confidence in market maturation.
- Analysts link 2025’s institutional momentum to a more crypto-friendly U.S. policy under President Trump, with the surveyed firms overseeing $982 billion and industry capital nearing $5 trillion.