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 0 a result, a recent survey conducted by the Alternative Investment Management Association (AIMA) and PwC revealed that the percentage of traditional hedge funds holding cryptocurrencies has climbed to 55%, up from 47% in 1 Crypto Exposure Among Hedge Funds Despite the ongoing volatility in crypto markets, 47% of institutional investors surveyed expressed that the current regulatory environment, shaped by Trump’s appointments of crypto-friendly agency heads and the implementation of the GENIUS Act has encouraged them to increase their allocations to digital 2 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 3 year, those barriers are starting to be 4 year’s report may mark a turning point in overcoming these challenges.
However, regulatory clarity isn’t the sole factor driving institutional interest in 5 fear of missing out (FOMO) on substantial market gains is also a compelling 6 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 7 Dominates, Solana’s Popularity Surges Among the crypto-focused funds, Bitcoin (BTC) remains the most commonly held asset, closely followed by Ethereum (ETH) and Solana (SOL). Notably, Solana saw a surge in popularity this year, with 73% of the funds now holding it, a marked increase from 45% in 8 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 9 firms are also showing interest in this 10 Howard Asset Management has reportedly appointed a former executive from Peter Thiel’s family office to lead a crypto-focused investment division. Additionally, asset managers like Steven Cohen’s Point72 Asset Management and Elliott Investment Management have disclosed holdings in Bitcoin and Ethereum-linked 11 to the AIMA survey, the proportion of respondents using ETFs has risen to 33%, compared to 25% the previous 12 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 13 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 14 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 15 image from DALL-E, chart from 16
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