A recent global industry survey has found that 55% of hedge funds now include cryptocurrency-related assets in their portfolios, up from 47% in the previous year. The survey covered 122 fund managers overseeing roughly $982 billion in assets. Most funds that hold crypto allocate on average 7% of their assets, although more than half of them keep the allocation under 2%. Reuters
This growing institutional engagement is driven by several factors: rising digital-asset prices in 2025, increasing regulatory clarity (especially in the U.S.), and the gradual integration of crypto into conventional finance. According to the report, 67% of crypto-holding hedge funds use derivatives rather than holding the underlying digital assets directly, signalling the growing complexity and risk profile of this exposure. Reuters
For the broader market, this trend has major implications: increased institutional flows can boost liquidity, drive correlations with traditional assets, and potentially increase market size and maturity. Yet, it also introduces new risks: derivative positions amplify leverage, institutional withdrawals can trigger large-scale liquidations, and the closer integration with traditional finance may raise systemic concerns. The survey concludes that we may be witnessing a turning point in crypto regulation and market architecture. Reuters
In summary, the fact that a majority of hedge funds now include crypto marks a key evolution in the market—but it also means that crypto is increasingly sensitive to the same macro, regulatory and liquidity risks that affect traditional asset classes.
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