Solana News Today: Regulatory Clarity Fuels Hedge Fund Crypto Push as Solana Surpasses Ethereum

Traditional hedge funds are significantly deepening their exposure to cryptocurrencies, driven by a combination of regulatory clarity and market optimism, according to an AIMA survey. The Alternative Investment Management Association (AIMA) reported that 55% of traditional hedge funds now hold crypto assets as of 2025, up from 47% in 2024. This shift reflects growing institutional confidence, particularly in the U.S., where regulatory reforms under President Donald Trump's administration have reduced uncertainties around digital assets, as detailed in a CryptoTimes report.

The average allocation to crypto-related assets stands at 7% of portfolios, though most funds maintain relatively modest positions, with over half investing less than 2%, according to the survey. Despite this, 71% of respondents plan to increase their exposure within the next year, citing improved regulatory frameworks and the risk of missing out on potential gains, according to a Cryptopolitan report. U.S. policies, including the enactment of the GENIUS Act to regulate stablecoins and the appointment of crypto-friendly officials, have been pivotal in reshaping perceptions, the CryptoTimes piece notes.

Derivatives dominate entry strategies, with 67% of funds using crypto derivatives to gain price exposure without holding underlying assets, the survey found. This approach allows hedge funds to hedge bets or speculate on price movements while avoiding direct custody risks. However, the reliance on derivatives has raised concerns. A flash crash in October 2025 highlighted vulnerabilities linked to excessive leverage and inadequate infrastructure, according to the AIMA report.

Bitcoin remains the most sought-after asset, but Solana has emerged as a fast-growing favorite. Solana's adoption surged from 45% of funds in 2024 to 73% in 2025, outpacing Ethereum's growth, Cryptopolitan reports.

Major firms like Brevan Howard and Point72 have entered the space via exchange-traded funds (ETFs), with 33% of funds using ETFs this year—up from 25% in 2024, the Cryptopolitan piece adds.

Regulatory alignment is also gaining momentum globally. The Bank of England announced plans to synchronize its stablecoin rules with U.S. timelines, aiming to avoid competitive disadvantages. Meanwhile, Kazakhstan is set to launch a $1 billion crypto reserve fund by 2026, according to a Coinpedia report.

Challenges persist, however. The AIMA survey warns that derivatives-driven strategies could amplify market risks, especially if leverage remains unchecked. Additionally, decentralized finance (DeFi) is attracting attention, with 43% of crypto-invested hedge funds planning to expand into the sector within three years, the Cryptopolitan analysis finds.

As the crypto market matures, traditional finance's embrace of digital assets underscores a broader transition toward hybrid investment models. With $982 billion in assets under management surveyed, the hedge fund industry's pivot to crypto could reshape market dynamics in 2026, the AIMA data suggest.