The Trump administration's welcoming stance is driving mainstream hedge funds to deepen their involvement in the cryptocurrency market after years of resistance—a shift that a bull market alone could not achieve.

According to a recent survey by the Alternative Investment Management Association (AIMA) and PwC, the proportion of traditional hedge funds holding cryptocurrencies rose from 47% in 2024 to 55% this year.

Despite ongoing volatility and turbulence in the crypto market, about 47% of surveyed institutional investors said the current regulatory environment encourages them to increase their crypto allocations. The Trump administration has appointed crypto-friendly agency leaders and signed the GENIUS Act, establishing new rules for stablecoin oversight.

The survey, conducted in the first half of 2025, included 122 institutional investors and hedge fund managers globally, representing nearly $1 trillion in assets under management.

"For most of these funds, regulatory uncertainty has been the primary obstacle," said James Delaney, Managing Director of Regulatory Affairs at AIMA, in an interview. "This year, those barriers are starting to fall. This report may mark a turning point in overcoming them."

Of course, regulation is not the only factor attracting more sophisticated investors. They also fear missing out on massive gains, even if it means enduring the kind of steep declines seen in crypto assets over the past month.

Beyond traditional hedge funds, the survey also interviewed specialized fund managers allocating at least 50% of their assets to cryptocurrencies. Several new funds have launched this year, including one by BlockSpaceForce, which plans to invest in digital asset custody firms—particularly those hit hardest during the recent crypto downturn.

The survey found that among crypto-focused funds, Bitcoin remains the most widely held asset, followed by Ethereum and Solana, whose popularity has surged this year. The share of funds holding Solana rose from 45% in 2024 to 73%.