Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Traditional Hedge Funds Deepen Crypto Exposure Despite Market Swings

Traditional Hedge Funds Deepen Crypto Exposure Despite Market Swings

DeFi PlanetDeFi Planet2025/11/07 14:57
By:DeFi Planet

Quick Breakdown 

  • 55% of traditional hedge funds now have crypto exposure, up from 47% last year.
  • Most funds maintain small allocations, though 71% plan to expand within the next year.
  • Shifting U.S. crypto regulations are a major driver of renewed institutional participation.

 

More than half of traditional hedge funds are now invested in digital assets as institutional interest in crypto continues to gain ground, according to a new industry survey released on Thursday.

Traditional Hedge Funds Deepen Crypto Exposure Despite Market Swings image 0 Source : AIMA

The report from the Alternative Investment Management Association (AIMA) shows that 55% of hedge funds currently hold some form of crypto exposure in 2025. This marks an increase from 47% in 2024, signaling a gradual shift in sentiment even amid recent price turbulence and regulatory scrutiny.

Growing exposure, but allocation still modest

The survey — which polled 122 hedge fund managers overseeing roughly $982 billion in assets — found that hedge funds dedicate an average of 7% of their portfolios to crypto-related assets. However, most still remain cautious, with the majority allocating less than 2%.

Importantly, 71% of the surveyed funds say they plan to increase their crypto exposure over the next 12 months, reflecting a view that the digital asset market is moving toward greater maturity.

Derivatives dominate entry strategy

Despite rising interest, 67% of hedge funds prefer gaining crypto exposure through derivatives, avoiding direct ownership of digital tokens.

The report cautions that the market’s recent flash crash highlighted structural weaknesses — particularly excessive leverage and the lack of high-grade institutional support for derivatives markets.

Regulatory shifts in the U.S. fuel optimism

Nearly 47% of respondents pointed to changing U.S. regulatory dynamics as a key factor behind renewed confidence in digital assets. This comes after policy developments under the Trump administration and ongoing bipartisan negotiations in the Senate on a comprehensive crypto market structure bill.

Lawmakers have been working to push forward crypto-focused regulation before political activity tied to upcoming elections begins to slow legislative momentum. Meanwhile, the GENIUS Act, which proposes a national framework for stablecoin-based payments, recently entered its second public comment phase — a sign it may be inching closer to implementation.

 

Take control of your crypto  portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

0

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.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP Update: Digitap's Practical Applications Put XRP's Delayed Ambitions to the Test

- Digitap ($TAP) raised $1.4M in November 2025, outpacing rivals like Bitcoin Hyper and Pepenode with an 80% early investor discount. - The project combines crypto and fiat banking via a live app, Visa cards, and deflationary tokenomics, positioning it as XRP's real-world competitor. - $TAP's fixed 2B token supply and transaction-burning model create scarcity, with analysts projecting 50x-70x price growth by late 2026. - Digitap's 124% APR staking rewards and privacy-focused features like offshore-shielded

Bitget-RWA2025/11/07 18:54
XRP Update: Digitap's Practical Applications Put XRP's Delayed Ambitions to the Test

Vitalik Buterin Unveils a Fresh ZK Perspective and What It Means for the Crypto Industry

- Vitalik Buterin's GKR protocol revolutionizes ZK scalability, slashing verification costs by 10-15x and enabling ZKsync's 15,000 TPS with near-zero fees. - ZKsync's 150% token surge and institutional adoption by Citibank highlight ZK's market potential, while Starknet and Immutable expand use cases in DeFi and gaming. - Despite progress, Ethereum's modexp bottleneck and regulatory scrutiny of privacy coins like Zcash underscore technical and compliance challenges for ZK's long-term viability.

Bitget-RWA2025/11/07 18:50
Vitalik Buterin Unveils a Fresh ZK Perspective and What It Means for the Crypto Industry

Vitalik Buterin Backs ZKsync: Accelerating Ethereum Layer 2 Expansion and Driving DeFi Growth

- Vitalik Buterin endorsed ZKsync's Atlas upgrade, praising its transformative potential for Ethereum's scalability and DeFi. - The upgrade's unified liquidity framework enables real-time settlements and near-zero fees, attracting 30+ institutions like Citibank. - ZKsync's TVL lags behind competitors, but ZK token's 30x trading volume surge reflects investor confidence in its tokenomics overhaul. - Institutional adoption and Buterin's support highlight ZKsync's role in bridging DeFi and traditional finance

Bitget-RWA2025/11/07 18:50
Vitalik Buterin Backs ZKsync: Accelerating Ethereum Layer 2 Expansion and Driving DeFi Growth

Stellar News Today: XLM Battles at $0.2705—Major Players and Sellers Face Off at Crucial Resistance

- Stellar's XLM token saw volatile trading on Nov. 7, with price consolidating near $0.2702 after hitting key resistance at $0.2777 amid surging institutional volume. - Coordinated institutional buying of 2.5M and 1.5M tokens reversed bearish momentum, defending $0.2663 support while confirming $0.2777 resistance through 45.09M-token volume spikes. - Market remains divided as XLM struggles to break above $0.2815, with analysts warning renewed selling pressure could accelerate declines below $0.2709 amid mi

Bitget-RWA2025/11/07 18:22