{"id":91097,"date":"2025-11-07T01:28:12","date_gmt":"2025-11-07T06:28:12","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=91097"},"modified":"2025-11-07T01:31:50","modified_gmt":"2025-11-07T06:31:50","slug":"crypto-crosses-the-rubicon-majority-of-hedge-funds-now-invested","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2025\/crypto-crosses-the-rubicon-majority-of-hedge-funds-now-invested.html","title":{"rendered":"Crypto Crosses the Rubicon: Majority of Hedge Funds Now Invested"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.investopedia.com\/thmb\/fDv96xqYHcqRyD-wnZTWIf8c22g%3D\/1500x0\/filters%3Ano_upscale%28%29%3Amax_bytes%28150000%29%3Astrip_icc%28%29\/tradingdeskGettyImages-699097867-a1092e466f454fcd8b5a735b2165e4fb.jpeg\" alt=\"https:\/\/www.investopedia.com\/thmb\/fDv96xqYHcqRyD-wnZTWIf8c22g%3D\/1500x0\/filters%3Ano_upscale%28%29%3Amax_bytes%28150000%29%3Astrip_icc%28%29\/tradingdeskGettyImages-699097867-a1092e466f454fcd8b5a735b2165e4fb.jpeg\"\/><\/figure>\n\n\n\n<p>(HedgeCo.Net(  A major shift is underway in the alternative-asset universe: a recent survey by Alternative Investment Management Association (AIMA) and PwC finds that\u00a0<strong>55 %<\/strong>\u00a0of hedge funds now have exposure to cryptocurrencies, up from 47 % last year.\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.reuters.com\/business\/more-than-half-hedge-funds-invested-crypto-global-survey-says-2025-11-06\/?utm_source=chatgpt.com\" target=\"_blank\">Reuters+1<\/a>\u00a0On average, these funds allocate about 7 % of their assets to digital assets \u2014 though \u201cmost keep it below 2 %\u201d.\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.channelnewsasia.com\/business\/more-half-hedge-funds-invested-in-crypto-global-survey-says-5451126?utm_source=chatgpt.com\" target=\"_blank\">CNA<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What\u2019s driving it<\/h3>\n\n\n\n<p>Several factors are fueling the migration into crypto by hedge funds:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Regulatory shifts: The U.S. regulatory regime has begun signalling more clarity and a slightly more favourable stance on digital-assets infrastructure.&nbsp;<a href=\"https:\/\/www.channelnewsasia.com\/business\/more-half-hedge-funds-invested-in-crypto-global-survey-says-5451126?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">CNA+1<\/a><\/li><li>Price momentum: Some cryptocurrencies have had strong starts this year, drawing attention from funds seeking differentiated returns.<\/li><li>Search for un-correlated alpha: With traditional asset classes showing tighter correlations, crypto offers a new frontier for alternative exposure.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Risks and caveats<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Leverage concerns: The survey notes that 67 % of crypto-invested funds use derivatives rather than holding the assets outright \u2014 raising questions about counterparty, liquidity and structural risks in stressed markets.&nbsp;<a href=\"https:\/\/www.channelnewsasia.com\/business\/more-half-hedge-funds-invested-in-crypto-global-survey-says-5451126?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">CNA<\/a><\/li><li>Institutional infrastructure: The survey highlights flash-crash episodes tied to poorly regulated platforms and insufficient institutional infrastructure for trading\/settlement.&nbsp;<a href=\"https:\/\/www.channelnewsasia.com\/business\/more-half-hedge-funds-invested-in-crypto-global-survey-says-5451126?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">CNA<\/a><\/li><li>Small allocations: Although the number of funds in crypto is large, allocations remain modest in most cases \u2014 meaning the real \u201cbet\u201d is still relatively cautious.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Implications<\/h3>\n\n\n\n<p>This development could mark a tipping-point in the mainstreaming of digital assets within hedge-fund portfolios. For allocators, the question is how these exposures will behave in downside markets, and how operational infrastructure (custody, clearing, margin, regulatory oversight) will evolve. For fund-managers, crypto offers both opportunity and a reputational\/operational challenge: the need to blend new asset-class risk with traditional risk-management frameworks.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net( A major shift is underway in the alternative-asset universe: a recent survey by Alternative Investment Management Association (AIMA) and PwC finds that\u00a055 %\u00a0of hedge funds now have exposure to cryptocurrencies, up from 47 % last year.\u00a0Reuters+1\u00a0On average, these funds [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16282],"tags":[16297],"class_list":["post-91097","post","type-post","status-publish","format-standard","hentry","category-crypto","tag-crypto-tokens"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/91097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=91097"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/91097\/revisions"}],"predecessor-version":[{"id":91098,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/91097\/revisions\/91098"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=91097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=91097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=91097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}