Institutional Interest in Digital Assets Grows Amid Regulatory Changes

According to Cointelegraph, a recent survey by the Alternative Investment Management Association (AIMA) reveals a significant shift in traditional hedge funds towards digital assets. As of 2025, 55% of these funds have exposure to cryptocurrencies, marking an 8% increase from the previous year. This trend underscores a growing institutional interest in the crypto market, despite its inherent volatility. The survey included responses from 122 hedge fund managers, collectively managing $982 billion in assets. On average, these funds allocate 7% of their portfolios to crypto-related assets. However, most hedge funds maintain a conservative approach, investing less than 2% in cryptocurrencies. Notably, 71% of the surveyed funds plan to increase their crypto exposure within the next year. A significant portion, 67%, are engaging with cryptocurrencies primarily through derivatives, avoiding direct exposure. The report highlights concerns about vulnerabilities in derivatives markets, particularly regarding excessive leverage and inadequate institutional infrastructure. The evolving regulatory landscape in the United States is a major factor driving increased allocations to digital assets. Nearly half of the respondents attribute their growing interest to changes in U.S. regulations. Recent developments include the Trump administration's overhaul of digital asset rules and bipartisan efforts in the Senate to advance a comprehensive crypto market structure bill. Despite challenges posed by the ongoing government shutdown, there is momentum among lawmakers to push the legislation forward. North Carolina Republican Senator Thom Tillis has cautioned that Congress has limited time to enact crypto legislation before election-related activities potentially delay progress. The GENIUS Act, which outlines a stablecoin payments framework, is currently undergoing a second public comment period as it moves closer to implementation. These regulatory advancements are pivotal in shaping the future of digital assets and their integration into traditional financial systems.