Growing regulatory clarity around spot Bitcoin and Ether ETFs in the US and Asia has encouraged almost half of traditional hedge funds to gain exposure to digital assets.

Regulatory Clarity Boosts Crypto Adoption

A survey by the Alternative Investment Management Association and PwC revealed that 47% of hedge fund managers in traditional markets now have crypto exposure, according to Bloomberg. In 2024, crypto exposure rose by 62% compared to 2023, when only 29% reported involvement with digital assets.

Some Funds Maintain Cautious Approach

However, 76% of hedge funds with no crypto exposure said they are unlikely to adopt digital assets in the next three years. Two-thirds of traditional hedge funds do not plan to incorporate spot Bitcoin ETFs into their current digital asset strategies.

Investment Strategies and Outlook

According to the report, 58% of funds traded derivatives, while 25% traded tokens in the spot market. Although the use of derivatives has increased, spot market trading dropped by more than 50% compared to last year.

Greater regulatory clarity and the use of traditional strategies are driving interest in cryptocurrencies among hedge funds, though many remain cautious.