Solana News Update: Clearer Regulations Drive Hedge Fund Interest in Crypto as Solana Overtakes Ethereum

Conventional hedge funds are rapidly increasing their involvement in cryptocurrencies, fueled by clearer regulations and a positive market outlook, as revealed by an

. The Alternative Investment Management Association (AIMA) disclosed that by 2025, 55% of traditional hedge funds have invested in crypto assets, a rise from 47% in 2024. This trend signals a boost in institutional trust, especially in the United States, where regulatory changes under President Donald Trump have eased uncertainties surrounding digital currencies, according to a .

The survey indicates that, on average, 7% of hedge fund portfolios are allocated to crypto-related investments, though most funds keep their stakes small, with more than half allocating less than 2%. Nevertheless, 71% of participants intend to raise their crypto holdings in the coming year, motivated by better regulatory clarity and the fear of missing out on potential profits, as noted in a

. U.S. initiatives, such as the passage of the GENIUS Act for stablecoin oversight and the appointment of pro-crypto officials, have played a crucial role in shifting sentiment, the CryptoTimes article observes.

Derivatives are the preferred entry point, with 67% of funds utilizing crypto derivatives to gain price exposure without directly holding the assets, the survey reports. This strategy lets hedge funds speculate or hedge on price changes while sidestepping custody risks. However, this heavy use of derivatives has sparked concerns. An October 2025 flash crash exposed weaknesses tied to high leverage and insufficient infrastructure, according to the AIMA findings.

Bitcoin continues to be the leading choice, but

has quickly become a top contender. Solana's adoption jumped from 45% of funds in 2024 to 73% in 2025, surpassing Ethereum's pace, as reported by Cryptopolitan. Leading firms such as Brevan Howard and Point72 have entered the market through exchange-traded funds (ETFs), with 33% of funds investing in ETFs this year, up from 25% in 2024, according to the Cryptopolitan report.

Efforts to harmonize regulations are also

worldwide. The Bank of England has revealed plans to align its stablecoin regulations with those of the U.S. to prevent losing its competitive edge. At the same time, Kazakhstan intends to establish a $1 billion crypto reserve fund by 2026, as per a .

Nonetheless, challenges remain. The AIMA survey cautions that strategies centered on derivatives could heighten market risks, particularly if leverage is not properly managed. Furthermore, decentralized finance (DeFi) is drawing increased interest, with 43% of hedge funds invested in crypto planning to expand into DeFi within the next three years, according to Cryptopolitan's analysis.

As the digital asset sector evolves, the growing acceptance of crypto by traditional finance highlights a shift toward blended investment strategies. With $982 billion in assets under management surveyed, the hedge fund industry's move into crypto could significantly influence market trends in 2026, AIMA data indicates.