January 28, 2025 — The start of a pro-crypto Trump administration in the U.S. has energized the crypto industry, which now represents a $3 trillion-plus asset class, with Bitcoin and Ethereum accounting for more than $2 trillion.
Optimism about the prospects of favorable regulatory treatment and future growth is accelerating crypto adoption among investors.
“In both the U.S. and Europe, asset managers and hedge funds have been dedicating growing resources to digital assets, including technology, data and personnel,” says David Easthope, Head of Fintech Research in the Market Structure & Technology practice at Crisil Coalition Greenwich and author of a new report titled, Digital Asset Investing 2025: Expanding the Frontier. “These personnel now have the wind in their sails due to improving sentiment, valuations and a U.S. regulatory posture seeking to incorporate these assets into traditional regulatory structures.”
Growing Exposures, More Sophisticated Strategies
Crisil Coalition Greenwich predicts that investors will also begin adopting more advanced crypto strategies. For example, while most crypto investment strategies today are long-only approaches that deliver basic exposure to the asset class, 42% of firms have already deployed more sophisticated strategies, including long/short, multi-strategy and index strategies.
“Some investors could simply allocate to Bitcoin or Ethereum and stop there,” says David Easthope. “Moreover, ETFs will continue to be a popular choice for traditional investors, as they offer a way to invest in Bitcoin without taking on the technology risks.”
The Long Tail of Assets
An expanding universe of investment firms will be developing digital asset strategies to capitalize on this demand. Crisil Coalition Greenwich data points to a growing focus on the long tail of crypto assets such as alt coins and DeFi tokens going forward as the sector offers more alpha-generating strategies.
Furthermore, derivatives offer a way to gain exposure.
“Going forward, in addition to futures, the emergence of options on ETFs will enable investors to speculate and hedge, allowing for a market structure that traders can more fully utilize,” says David Easthope.
Crisil Coalition Greenwich Report
Digital Asset Investing 2025: Expanding the Frontier presents the results of a study of buy-side, sell-side, market infrastructure, and technology and data firms across the U.S. and Europe, with a focus on data from asset managers and hedge funds.
Source: Crisil Coalition Greenwich
