Solana News Update: Clearer Regulations Drive Hedge Fund Interest in Crypto as Solana Overtakes Ethereum
- Traditional hedge funds increased crypto exposure to 55% in 2025, driven by U.S. regulatory clarity under Trump and market optimism. - Solana adoption surged to 73% among funds, outpacing Ethereum , while derivatives dominate entry strategies (67%) to avoid custody risks. - 71% of funds plan to boost crypto allocations amid improved frameworks, though derivatives-driven strategies risk amplifying market volatility. - Global regulatory alignment (e.g., UK-U.S. stablecoin rules) and emerging markets like K
Conventional hedge funds are rapidly increasing their involvement in cryptocurrencies, fueled by clearer regulations and a positive market outlook, as revealed by an
The survey indicates that, on average, 7% of hedge fund portfolios are allocated to crypto-related investments, though most funds keep their stakes small, with more than half allocating less than 2%. Nevertheless, 71% of participants intend to raise their crypto holdings in the coming year, motivated by better regulatory clarity and the fear of missing out on potential profits, as noted in a
Derivatives are the preferred entry point, with 67% of funds utilizing crypto derivatives to gain price exposure without directly holding the assets, the survey reports. This strategy lets hedge funds speculate or hedge on price changes while sidestepping custody risks. However, this heavy use of derivatives has sparked concerns. An October 2025 flash crash exposed weaknesses tied to high leverage and insufficient infrastructure, according to the AIMA findings.
Bitcoin continues to be the leading choice, but
Efforts to harmonize regulations are also
Nonetheless, challenges remain. The AIMA survey cautions that strategies centered on derivatives could heighten market risks, particularly if leverage is not properly managed. Furthermore, decentralized finance (DeFi) is drawing increased interest, with 43% of hedge funds invested in crypto planning to expand into DeFi within the next three years, according to Cryptopolitan's analysis.
As the digital asset sector evolves, the growing acceptance of crypto by traditional finance highlights a shift toward blended investment strategies. With $982 billion in assets under management surveyed, the hedge fund industry's move into crypto could significantly influence market trends in 2026, AIMA data indicates.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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