Hopes of some sort of clear regulatory framework by June "may have been a bit optimistic"
By
Jamie Crawley|Edited by Parikshit Mishra
Updated Apr 23, 2025, 4:20 p.m. Published Apr 23, 2025, 1:00 p.m.
Fundraising for sophisticated crypto investment vehicles has yet to fully experience the anticipated positive headwind of the Donald Trump presidency, according to a new report by the Crypto Insight Group.
Momentum "remains positive but slower than [fund] managers anticipated under the new Trump administration," the Hedge Fund Outlook 2Q25 report said.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the State of Crypto Newsletter today. See all newsletters
By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy.
"Net inflows continue, yet the pace lags early-year projections as allocators calibrate risk budgets," it added.
The ostensibly pro-crypto position of the Trump administration brought about optimism across the digital asset industry of bullish momentum thanks to the increased regulatory clarity that was expected in the U.S.
Hopes of some sort of clear regulatory framework by June "may have been a bit optimistic," Laura Vidiella del Blanco, head of investor relations for digital assets at VanEck, said in the report.
"While net new capital continues to flow into private funds, the first few months of 2025 brought a series of surprised that have clearly influenced allocators' sense of urgency around deployment and the speed at which many fund managers expected things to happen," she added.
Trump giveth and Trump taketh away?
Despite the optimism for what a pro-crypto administration in Washington, D.C. could bring, President Trump's unveiling of his aggressive plans for tariffs on imports to the U.S. brought about volatility in financial markets from which crypto suffered as much as any other asset class.
Bitcoin fell to a six-month low of around $76,000 in the days after new tariffs initially went into effect early this month. For the crypto community, this may have been a indicator that Trump giveth and Trump taketh away.
"Trump's tariffs have already unleashed mayhem in global market and destroyed trillions of dollars in value," Chris Solarz, chief investment officer of Amitis Capital, said in the report.
"His inconsistent and unpredictable rhetoric has shaken investor confidence and raised fears of a full-blown return to 1930s-style protectionism."
However, the overall sentiment toward the Trump administration from fund managers is "overwhelmingly constructive," based on the report's surveys.
Over half (52%) of respondents said they expect more positive surprises than expected from policy decisions in the next 12 months, compared to less than 10% saying they expected more negative surprises and about 40% saying decisions would align with their expectations.
Managers expect upside surprises such as clearer token classifications, stablecoin legislation and a credible route to spot market products, the report said.
"Trump's recent geopolitical moves reinforce this view: by underscoring U.S. competitiveness in strategic tech, they are seen as catalysts that could accelerate institutional adoption rather than impede it."
Respondents were fairly evenly split on whether Trump's geopolitical moves would have an effect on institutional adoption of crypto. Around 36% said they would delay adoption, compared to about 34% believing they would accelerate adoption and 30% saying they would have no impact.
