According to the Seventh Annual Global Crypto Hedge Fund Report by AIMA and PwC, 55% of traditional hedge funds now hold crypto assets, a significant increase from 47% in 2024. The survey, which polled 122 managers overseeing over $980 billion in assets, reveals that while many funds maintain cautious positions—over half allocate less than 2% to crypto—the average exposure stands at 7%. 71% of these funds plan to increase their crypto holdings over the next 12 months, driven by portfolio diversification (47%), market-neutral alpha opportunities (27%), and asymmetric return potential (13%).
Funds are diversifying their access methods: spot trading grew to 40% (from 25% in 2024), while derivatives usage rose to 67%. Exchange-traded products account for 33% of exposure, with tokenized assets and related equities each at 27%. Crypto-native hedge funds are expanding rapidly, with average assets under management reaching over $130 million in 2025, up from $79 million in 2024. The most widely held coins include Bitcoin (86%), Ethereum (80%), Solana (73%—up from 45% in 2024), and XRP (37%). Yield strategies are also popular, with 39% of funds using custodial staking and 35% employing liquid staking.
In parallel, tokenization is gaining momentum, with 33% of hedge funds actively exploring or implementing tokenized fund units. 52% expressed interest in tokenized structures, citing benefits like broader investor access and operational efficiencies. The real-world asset (RWA) market hit a record $35.8 billion valuation in November 2025, led by tokenized money market funds such as BlackRock's BUIDL ($2.8 billion), Circle USYC ($990 million), and Franklin OnChain U.S. Government Money Fund ($844 million). Smaller fund managers (under $1 billion AUM) show higher adoption rates (37% interest), and macro strategy managers lead at 67%.
Despite growing interest, 72% of respondents cited legal and regulatory uncertainty as the primary barrier, with regional variations—44% in North America versus 9% in APAC. Coinbase CEO Brian Armstrong emphasized tokenization's potential for 24/7 trading and instant settlement, aligning with hedge fund managers' focus on operational advantages. Looking ahead, 15% of managers expect tokenized structures to become the industry standard within a decade, while 55% anticipate parallel use with traditional formats.
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