Best cryptocurrency solutions for hedge funds in 2025

Hedge funds are no longer standing on the sidelines when it comes to digital assets.

From Bitcoin and Ethereum to tokenized real-world assets, crypto exposure is becoming a must for diversified portfolios. But trading crypto at a professional scale is not as simple as opening an exchange account. Fund managers need infrastructure that ensures security, compliance, and execution efficiency. This is where crypto solutions for hedge funds step in, bridging traditional finance expectations with the unique demands of blockchain markets.

Essential Crypto Services for Hedge Funds

At the institutional level, crypto management involves much more than buying and holding tokens. Hedge funds require a package of professional services that mirrors prime brokerage in traditional finance:

Custody: Secure storage of digital assets is fundamental. Solutions typically use either multi-sig wallets (transactions require multiple approvals) or MPC custody (multi-party computation, where private keys are split across parties). For a hedge fund managing $200M in assets, one weak key could compromise the entire portfolio, making institutional custody non-negotiable.
Liquidity aggregation: Crypto liquidity is fragmented across dozens of exchanges. Hedge funds need platforms that aggregate order books to reduce slippage when executing trades worth millions. Without aggregation, moving $10M in BTC can shift market prices and damage profitability.
Compliance and reporting: Regulators expect hedge funds to maintain audit trails. Platforms offering built-in KYC/AML monitoring and automated reporting tools simplify compliance and investor transparency.
API and infrastructure: Advanced APIs allow algorithmic trading, real-time market data feeds, and integration with risk management systems. Without stable APIs, execution delays can eat into fund performance.
Cryptocurrency sub accounts: These accounts let managers separate strategies, limit risk exposure, and assign access to specific teams. Imagine a hedge fund running both a DeFi yield strategy and a BTC arbitrage desk. Without sub accounts, tracking P&L and segregating risks becomes a nightmare.