Throughout the year, President Donald Trump’s crypto policies have spurred a notable increase in the adoption of digital assets through various channels, including exchange-traded funds (ETFs) and crypto-focused treasuries.
James Delaney, managing director of asset management regulation at AIMA, commented on the findings, stating:
For most of these funds, regulatory uncertainty has been a major barrier. This year, those barriers are starting to be removed. This year’s report may mark a turning point in overcoming these challenges.
The survey highlighted that alongside traditional hedge funds, specialized fund managers with at least 50% of their assets in crypto have emerged, with several new funds launched this year.
On average, hedge funds have allocated about 7% of their assets to crypto, up from 6% the previous year, although over half of the respondents commit less than 2%. Encouragingly, 71% of those surveyed indicated plans to increase their crypto exposure within the next twelve months.
Major firms are also showing interest in this space. Brevan Howard Asset Management has reportedly appointed a former executive from Peter Thiel’s family office to lead a crypto-focused investment division.
The survey indicated that the most popular access method to the digital asset market among managers is through derivatives, with 67% of respondents utilizing them, an increase from 58% in 2024. Spot trading has also grown, rising to 40% from 25%.
Moreover, some asset managers are exploring the tokenization of their funds, similar to initiatives by firms like BlackRock. Over half of the survey participants expressed interest in this approach.
Lastly, the survey found that 43% of traditional hedge funds investing in crypto plan to enhance or initiate their engagement with DeFi over the next three years, with nearly a third believing that DeFi could disrupt their business models.
Featured image from DALL-E, chart from TradingView.com
