Protect the assets you hold, not just the business that holds them
74% of institutional investors plan to increase digital-asset allocations in 2026. We place custody and crime coverage for firms with digital assets on the balance sheet, whether those are client funds or your own treasury.
Built for funds and asset managers, with underwriting questions that match how you actually custody assets.
What is digital asset insurance for funds?
Digital asset insurance for funds is a package of specialty coverage that responds to theft or loss of crypto held in custody, claims against fund management, cyber events, and professional errors. Alton Risk places custody, crime, D&O, cyber, fiduciary and tech E&O coverage for hedge funds and asset managers that hold digital assets for clients or on their own balance sheet.
The numbers behind the allocation shift
Institutional capital is moving into digital assets faster than most balance sheets are insured for it.
Of institutional investors plan to increase their digital-asset allocations in 2026.
Coinbase & EY-Parthenon, Jan 2026
Of hedge funds now have crypto exposure, up from 47% in 2024, representing roughly $982B in surveyed AUM.
AIMA & PwC, Nov 2025
Of crypto hedge funds use a third-party custodian rather than holding assets on-exchange or self-custodying.
AIMA & PwC, Nov 2025
Of asset managers are now interested in tokenizing assets, up from 40% in 2025.
Coinbase & EY-Parthenon, Jan 2026
Sources: Coinbase & EY-Parthenon, 2026 Institutional Investor Digital Assets Survey · AIMA & PwC, 7th Annual Global Crypto Hedge Fund Report.
A bindable quote in three steps
Built for how funds and asset managers actually custody digital assets.
Tell us how assets are custodied, whether hot, cold, or through a third-party custodian.
Choose custody, crime, and liability limits sized to your AUM.
Bind coverage before your next audit or LP review.
Get covered before your next audit or LP review
Coverage sized for what you hold
Five lines built around the fiduciary and custody exposure of holding digital assets for clients or on your own balance sheet, placed with specialist digital asset markets.
Custody & Crime
Theft or loss of digital assets in custody, underwritten differently for cold storage versus hot wallets.
D&O
Coverage for fund leadership and decision-making, increasingly required by institutional LPs.
Cyber Liability
Costs from a data breach or network security failure affecting client holdings.
Fiduciary Liability
Claims that the fund breached its duty in managing or safeguarding client digital assets.
Tech E&O
Claims that your platform or reporting infrastructure caused a client financial harm.
Go deeper
Digital asset custody insurance, explained for fund managers
What custody coverage insures, what it excludes and what a fund should ask for.
Crime insurance versus custody coverage for digital assets
Why a standard crime policy rarely answers a crypto loss on its own.
How underwriters view cold storage versus hot wallets
Storage method shapes terms, limits and price. Here is how and why.
Insurance for LP due diligence at a digital asset fund
What institutional investors ask about insurance, and how to answer clearly.
Common questions from funds and asset managers
Do LPs require digital asset insurance?
Increasingly yes. Many institutional LPs ask fund managers to show custody and crime coverage before allocating to a digital asset strategy, which tracks with 74% of institutional investors now planning to increase their allocations.
Is cold storage covered differently than hot wallets?
Yes. Custody arrangements are underwritten separately because they carry different theft and key-management risk.
Can I get coverage before my next audit?
Most applicants can bind within a week, in time for scheduled audits or LP reporting.
Does using a third-party custodian reduce the coverage I need?
Not entirely. 73% of crypto hedge funds already use a third-party custodian, but the fund typically still carries fiduciary and D&O exposure for the custody decision itself, separate from the custodian's own coverage.
What does digital asset insurance for a fund typically include?
A typical program combines custody and crime coverage for theft or loss of digital assets, D&O for fund leadership, cyber liability for breaches affecting client holdings, fiduciary liability for custody decisions, and tech E&O for platform or reporting failures.
Who places digital asset insurance for funds at Alton Risk?
Alton Risk is a commercial insurance brokerage founded in 2026 by former carrier-side underwriters. It places custody, crime and liability coverage for hedge funds and asset managers with specialist digital asset markets.
Built by operators, not outsiders
Alton Risk Insurance Services is a commercial insurance brokerage for companies building the future. It was founded in 2026 by Sophia Zaller, and the carrier-side underwriting experience behind our placements is the reason we know what a market will and will not accept. Technology speeds up our work, and the judgment comes from people who have priced and placed these risks.
Also serving exchanges, custodians, and trading desks at insurecryptofirms.com and insureportfoliocompanies.com.
Tell us how you custody assets
It takes about a minute, and a broker follows up by email with quote options.