New data show that over half of global hedge funds now hold cryptocurrency positions, with assets under management in hedge funds reaching roughly US$5 trillion. The shift reflects growing institutional interest in digital assets, alongside concerns over leveraged structures and limited infrastructure. Flash‑crashes and regulatory scrutiny are cited as key risks as crypto flows move deeper into mainstream portfolios. Analysts warn the rising interconnection between traditional finance and digital assets could raise systemic‑risk questions if volatility spikes again or regulatory frameworks tighten.