A recent survey by the Association for Alternative Investment Management (AALEM) and PwC reveals that 55% of traditional hedge funds now hold cryptocurrencies, up from 47% in 2024. The survey, conducted in the first half of 2025, included 122 global institutions managing nearly $1 trillion in assets. It highlights that 47% of institutional investors increased their crypto allocations due to the current regulatory environment. The survey also notes that Bitcoin remains the most widely held cryptocurrency among these funds, followed by Ethereum and Solana, with Solana holdings rising to 73% from 45% last year. While cryptocurrency is just one of many strategies for most hedge funds, with an average allocation of 7%, over half allocate less than 2%. Notably, 71% of respondents plan to increase their cryptocurrency exposure in the next year, and 67% have used crypto derivatives, up from 58% in 2024. Interest in tokenization is also growing, with 52% of respondents expressing interest, and 43% of traditional hedge funds planning to engage in DeFi within three years.