**Crypto Confidence Grows Among Hedge Funds**

Regulatory clarity around Bitcoin and Ether ETFs in the US and Asia is driving traditional hedge funds towards digital assets. A survey by the Alternative Investment Management Association and PwC found that 47% of hedge fund managers now have crypto exposure, a significant jump from 29% in 2023.

- **Rising Confidence**: James Delaney from AIMA notes that global regulatory clarity is boosting hedge fund confidence in crypto.

- **Investment Trends**: 67% of hedge funds plan to maintain their crypto investments, while 33% aim to increase their exposure.

- **Trading Strategies**: 58% of hedge funds are using derivatives, though spot market trading has decreased by over 50%.

Despite this, 76% of hedge fund managers without crypto exposure are unlikely to adopt digital assets in the next three years. Edward Chin of Parataxis Capital highlights the potential for higher returns in the less efficient crypto market. However, two-thirds of traditional hedge funds remain hesitant to incorporate spot Bitcoin ETFs into their strategies.