U.S. spot exchange-traded funds holding Bitcoin (BTC) and Ether (ETH) had about $111 billion in combined assets as of Oct. 31, 2026. Active crypto hedge funds averaged $132 million in assets under management, while 91% had less than $1 billion.
The figures compare different parts of the market and do not track the same investors’ choices. On Capital Connect, directional strategies accounted for 44.3% of funds but 6.7% of platform assets. Market-neutral, statistical-arbitrage and traditional-finance-style multi-strategy funds together held 92.1% of the platform’s assets. The average single investment in neutral strategies was about 11 times larger than one in directional strategies.
A separate survey found that 81% of institutions preferred registered, compliant products for spot exposure. In allocator interviews, 80% placed asset security ahead of historical performance and institutional reputation. Interviewees also emphasized the value of verifiable exchange trading records in due diligence. Difficult-to-verify track records and compliance checks, including know-your-customer and anti-money-laundering reviews, can slow fundraising.
October returns were positive on average for both directional and market-neutral funds, even as Bitcoin fell 7.2%. Directional funds gained an average 1.9%, while market-neutral funds gained 1%.
In that sample, 55% of directional funds posted gains, compared with nine of 10 market-neutral funds. The performance range from the best to worst directional fund was about eight times the range among market-neutral funds. The top quarter of directional funds averaged a 69% return since inception.
The figures show a wide range of outcomes among active strategies. Allocators interviewed placed emphasis on drawdown control alongside security and verifiable records when assessing managers.
Enna Lee
Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].
