(HedgeCo.Net( A major shift is underway in the alternative-asset universe: a recent survey by Alternative Investment Management Association (AIMA) and PwC finds that 55 % of hedge funds now have exposure to cryptocurrencies, up from 47 % last year. Reuters+1 On average, these funds allocate about 7 % of their assets to digital assets — though “most keep it below 2 %”. CNA

What’s driving it

Several factors are fueling the migration into crypto by hedge funds:

• Regulatory shifts: The U.S. regulatory regime has begun signalling more clarity and a slightly more favourable stance on digital-assets infrastructure. CNA+1
• Price momentum: Some cryptocurrencies have had strong starts this year, drawing attention from funds seeking differentiated returns.
• Search for un-correlated alpha: With traditional asset classes showing tighter correlations, crypto offers a new frontier for alternative exposure.

Risks and caveats

• Leverage concerns: The survey notes that 67 % of crypto-invested funds use derivatives rather than holding the assets outright — raising questions about counterparty, liquidity and structural risks in stressed markets. CNA
• Institutional infrastructure: The survey highlights flash-crash episodes tied to poorly regulated platforms and insufficient institutional infrastructure for trading/settlement. CNA
• Small allocations: Although the number of funds in crypto is large, allocations remain modest in most cases — meaning the real “bet” is still relatively cautious.

Implications

This development could mark a tipping-point in the mainstreaming of digital assets within hedge-fund portfolios. For allocators, the question is how these exposures will behave in downside markets, and how operational infrastructure (custody, clearing, margin, regulatory oversight) will evolve. For fund-managers, crypto offers both opportunity and a reputational/operational challenge: the need to blend new asset-class risk with traditional risk-management frameworks.