Crypto Fund Research
Q1 · 2026 Quarterly Report
Crypto Fund
Quarterly Report
In-depth analysis of crypto fund performance, industry demographics, strategy benchmarks, and market trends for Q1 2026.
-4.0%
CFR Index
Q1 Return
Q1 Return
-22.0%
Bitcoin
Q1 Return
Q1 Return
$93.4B
Industry
AUM
AUM
870
Active
Funds
Funds
Section 01
Market Overview
Crypto funds posted negative returns in Q1 2026, with the CFR Crypto Fund Index declining 4.0%. Bitcoin fell 22.0% for the quarter, meaning the average crypto fund outperforming the leading benchmark. Industry AUM held near the $93 billion mark at an estimated $93.4B. Fund count remained stable at approximately 870 active funds.
$93.4B
Estimated total crypto fund assets under management at the end of Q1 2026.
67%
67% of crypto fund strategies outperformed Bitcoin in Q1.
Section 02
Crypto Fund Performance
The CFR Crypto Fund Index, which tracks the average net-of-fees return of actively managed crypto funds, returned -4.0% in Q1 2026. Bitcoin declined 22.0% over the same period.
CFR Crypto Fund Index vs. Bitcoin
Monthly returns for Q1 2026
The CFR Crypto Fund Index returned -4% in Q1 2026, outperforming Bitcoin's -22% return by 18 percentage points. February was the strongest month for the index at +0.3%, while January saw the most modest performance at -3.4%.
Source: Crypto Fund Research. CFR Crypto Fund Index methodology at cryptofundresearch.com/cfr-crypto-fund-index/
CFR Crypto Fund Index vs. Bitcoin — Growth of $1,000
December 2016 – March 2026
Since inception in January 2017, a $1,000 investment in the CFR Crypto Fund Index would have grown to approximately $96,038 by the end of Q1 2026, representing a cumulative return of +9,504%. Over the same period, a $1,000 investment in Bitcoin would have grown to $70,801 (+6,980%).
Source: Crypto Fund Research
Monthly Returns Heatmap — Q1 2026
Average net-of-fees returns by strategy and month
Jan
Feb
Mar
Q1 Total
Fund of Funds
+0.0%
−0.8%
−2.2%
−2.9%
Algorithmic/Quant
−0.6%
+5.0%
−2.0%
+2.3%
Long Only
−8.0%
−16.5%
+1.5%
−22.0%
Venture/ICO
+0.0%
+0.0%
+0.0%
+0.0%
Multi-Strategy/Other
−6.5%
−11.0%
−0.4%
−17.1%
Index/Tracker
−3.5%
−21.9%
+0.0%
−24.6%
CFR Index
−3.4%
+0.3%
−1.0%
−4.0%
Bitcoin
+0.0%
+0.0%
+0.0%
−22.0%
Algorithmic/Quant led all strategies in Q1 2026 with a total return of +2.3%, while Index/Tracker posted the lowest return at -24.6%. Across all strategies, Mar was the strongest month of the quarter.
Source: Crypto Fund Research
Section 03
Performance by Strategy
Strategy-level returns varied meaningfully in Q1. The data below shows how each major fund strategy category performed relative to Bitcoin and the overall CFR Index.
Q1 2026 Performance by Fund Strategy
Average quarterly return by strategy vs. Bitcoin benchmark
Algorithmic/Quant funds were the top-performing strategy in Q1 2026 with an average return of +2.3%. Index/Tracker funds posted the most modest returns at -24.6%. The index's -4% return in Q1 2026 was up from -7.2% in Q4 2025.
Source: Crypto Fund Research
2026 Year-to-Date Cumulative Returns by Strategy
Growth of $100 invested January 1, 2026
Through March 2026, Algorithmic/Quant funds delivered the strongest year-to-date return at +2.3%, followed by the CFR Index at -4%. Index/Tracker funds trailed at -24.6% YTD.
Source: Crypto Fund Research
Section 04
Industry Demographics
The crypto fund industry comprises more than 870 funds. The data below covers fund launches, AUM trends, fund type distribution, geographic spread, and fee structures.
Fund launch and closure data for this quarter has not been entered yet.
Cumulative Crypto Fund AUM
Estimated total assets under management, millions USD
Crypto fund industry AUM stood at an estimated $93.4B at the end of Q1 2026, down 6.4% from $99.9B in Q4 2025. Industry AUM peaked at $101.5B in Q1 2025.
Source: Crypto Fund Research
Crypto Funds by Type
Distribution of funds across primary categories, Q1 2026
Of the 893 crypto funds tracked in Q1 2026, Hedge Fund make up 49.2% (439 funds). Venture Capital make up 47.4% (423 funds), Private Equity / Other make up 3.5% (31 funds).
Source: Crypto Fund Research
Crypto Funds by Region
Primary office location, Q1 2026
As of Q1 2026, crypto funds are distributed across: North America (51.9%), Europe (21.1%), Asia (19%), Offshore (4.4%), Middle East (2.2%). About 4.4% of funds are based exclusively offshore.
Source: Crypto Fund Research
Average Fee Structure by Strategy
Management and performance fees, Q1 2026
The average crypto fund in Q1 2026 charges a 1.30% management fee and 13.32% performance fee. Long Only funds charge the highest management fees at 2.40%, while Algorithmic/Quant funds charge the highest performance fees at 23.40%.
Source: Crypto Fund Research
Section 05
Risk-Adjusted Performance Metrics
Risk-adjusted metrics provide insight into the efficiency and consistency of returns across fund strategies. Below are key since-inception metrics computed across all reporting funds.
| Metric | Fund of Funds | Algorithmic/Quant | Long Only | Venture/ICO | Multi-Strategy/Other | Index/Tracker | All Funds |
|---|---|---|---|---|---|---|---|
| Annualized Return | 68.3% | 82.3% | 431.1% | 49.9% | 1,383.7% | 60.6% | 528.0% |
| Sharpe Ratio | 1.47 | 2.49 | 1.04 | 1.23 | 1.93 | 0.67 | 1.86 |
| Sortino Ratio | 82.61 | 9.76 | 6.49 | 5.33 | 34.61 | 1.89 | 21.63 |
| Beta (to BTC) | 0.31 | 0.27 | 0.76 | 0.64 | 0.45 | 0.93 | 0.46 |
| Max Drawdown | −30.0% | −29.4% | −59.5% | −71.8% | −33.9% | −73.5% | −53.9% |
| Correlation (to BTC) | 0.53 | 0.33 | 0.73 | 0.43 | 0.54 | 0.76 | 0.51 |
| Std Dev (Annualized) | 35.7% | 28.7% | 63.7% | 56.8% | 45.6% | 65.9% | 44.3% |
| Skewness | 0.35 | 1.12 | 0.58 | 1.84 | 0.81 | 0.95 | 0.86 |
On a risk-adjusted basis through Q1 2026, Algorithmic/Quant funds have the highest Sharpe ratio at 2.49. Since-inception metrics reflect performance from January 2017 through March 2026.
Beta to Bitcoin by Fund Strategy
Since inception, higher = more correlated to BTC
Index/Tracker funds have the highest beta to Bitcoin at 0.93, followed by Long Only at 0.76, meaning their returns most closely track Bitcoin's movements. Algorithmic/Quant funds have the lowest beta at 0.27, indicating returns that are least correlated with Bitcoin price swings.
Source: Crypto Fund Research
Section 06
Q1 2026 Performance Awards
Crypto Fund Research tracks the net-of-fees performance of crypto funds. At the end of each quarter, we recognize the top performers overall and by strategy.
Performance awards for Q1 2026 have not yet been published.
Visit cryptofundresearch.com/crypto-fund-performance-awards/ for the latest awards.
For complete award winners, visit cryptofundresearch.com/crypto-fund-performance-awards/