2025 was the hardest year for cryptocurrency hedge funds since the market crashed in 2022. Policies and institutional funding did not bring about a breakthrough in the overall industry, but instead highlighted the fragility of the market structure. According to the data, as of November, directional funds fell 2.5% this year, recording the worst performance since 2022. According to Crypto Insights Group, strategy funds that focus on fundamentals and altcoins fell even deeper, retreating by around 23%. Only market-neutral funds achieved positive returns of around 14.4% through hedging strategies.

2025 was the hardest year for cryptocurrency hedge funds since the market crashed in 2022. Policies and institutional funding did not bring about a breakthrough in the overall industry, but instead highlighted the fragility of the market structure. According to the data, as of November, directional funds fell 2.5% this year, recording the worst performance since 2022. According to Crypto Insights Group, strategy funds that focus on fundamentals and altcoins fell even deeper, retreating by around 23%. Only market-neutral funds achieved positive returns of around 14.4% through hedging strategies.