Crypto Fund Research
Q4 · 2025 Quarterly Report
Crypto Fund
Quarterly Report
In-depth analysis of crypto fund performance, industry demographics, strategy benchmarks, and market trends for Q4 2025.
-7.2%
CFR Index
Q4 Return
Q4 Return
-7.0%
Bitcoin
Q4 Return
Q4 Return
$99.9B
Industry
AUM
AUM
870
Active
Funds
Funds
Section 01
Market Overview
Crypto funds posted negative returns in Q4 2025, with the CFR Crypto Fund Index declining 7.2%. Bitcoin fell 7.0% for the quarter, meaning the average crypto fund underperforming the leading benchmark. Industry AUM held near the $100 billion mark at an estimated $99.9B. Fund count remained stable at approximately 870 active funds.
$99.9B
Estimated total crypto fund assets under management at the end of Q4 2025.
33%
33% of crypto fund strategies outperformed Bitcoin in Q4.
Section 02
Crypto Fund Performance
The CFR Crypto Fund Index, which tracks the average net-of-fees return of actively managed crypto funds, returned -7.2% in Q4 2025. Bitcoin declined 7.0% over the same period.
CFR Crypto Fund Index vs. Bitcoin
Monthly returns for Q4 2025
The CFR Crypto Fund Index returned -7.2% in Q4 2025, underperforming Bitcoin's -7% return by 0.2 percentage points. November was the strongest month for the index at +0%, while December saw the most modest performance at -4.2%.
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 – December 2025
Since inception in January 2017, a $1,000 investment in the CFR Crypto Fund Index would have grown to approximately $100,068 by the end of Q4 2025, representing a cumulative return of +9,907%. Over the same period, a $1,000 investment in Bitcoin would have grown to $90,801 (+8,980%).
Source: Crypto Fund Research
Monthly Returns Heatmap — Q4 2025
Average net-of-fees returns by strategy and month
Oct
Nov
Dec
Q4 Total
Fund of Funds
−4.6%
−9.1%
−2.8%
−15.7%
Algorithmic/Quant
−0.1%
−1.6%
−4.3%
−6.0%
Long Only
−3.6%
−14.0%
−6.4%
−22.5%
Venture/ICO
+0.0%
+0.0%
+0.0%
+0.0%
Multi-Strategy/Other
−5.4%
−12.4%
−4.7%
−21.0%
Index/Tracker
−6.1%
−18.4%
−15.8%
−35.4%
CFR Index
−3.2%
−7.9%
−4.2%
−7.2%
Bitcoin
+0.0%
+0.0%
+0.0%
−7.0%
Venture/ICO led all strategies in Q4 2025 with a total return of +0%, while Index/Tracker posted the lowest return at -35.4%. Across all strategies, Oct was the strongest month of the quarter.
Source: Crypto Fund Research
Section 03
Performance by Strategy
Strategy-level returns varied meaningfully in Q4. The data below shows how each major fund strategy category performed relative to Bitcoin and the overall CFR Index.
Q4 2025 Performance by Fund Strategy
Average quarterly return by strategy vs. Bitcoin benchmark
Venture/ICO funds were the top-performing strategy in Q4 2025 with an average return of +0%. Index/Tracker funds posted the most modest returns at -35.4%. The index's -7.2% return in Q4 2025 was down from +10.2% in Q3 2025.
Source: Crypto Fund Research
2025 Year-to-Date Cumulative Returns by Strategy
Growth of $100 invested January 1, 2025
Through December 2025, Venture/ICO funds delivered the strongest year-to-date return at +0%, followed by the CFR Index at -2.6%. Index/Tracker funds trailed at -26.8% YTD.
Source: Crypto Fund Research
Q4 2025 Return Distribution — Quartile Spread
Top quartile, median, and bottom quartile returns by strategy
Return dispersion in Q4 2025 was widest among Multi-Strategy/Other funds, where top-quartile performers gained -0% while bottom-quartile funds returned -0.4% — a spread of 0.4 percentage points. Fund of Funds funds showed the tightest clustering with a spread of just 0 points, indicating more consistent returns across the category.
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 Q4 2025, down 6.4% from $99.9B in Q3 2025. Industry AUM peaked at $101.5B in Q1 2025.
Source: Crypto Fund Research
Crypto Funds by Type
Distribution of funds across primary categories, Q4 2025
Of the 871 crypto funds tracked in Q4 2025, Hedge Fund make up 50.6% (441 funds). Venture Capital make up 45.8% (399 funds), Private Equity / Other make up 3.6% (31 funds).
Source: Crypto Fund Research
Crypto Funds by Region
Primary office location, Q4 2025
As of Q4 2025, crypto funds are distributed across: North America (51.8%), Europe (21.3%), Asia (18.7%), Offshore (4.5%), Middle East (2.2%). About 4.5% of funds are based exclusively offshore.
Source: Crypto Fund Research
Average Fee Structure by Strategy
Management and performance fees, Q4 2025
The average crypto fund in Q4 2025 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 23.38%.
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 | 70.9% | 82.3% | 431.1% | 49.9% | 1,357.5% | 60.6% | 528.0% |
| Sharpe Ratio | 1.47 | 2.51 | 1.05 | 1.23 | 1.93 | 0.67 | 1.86 |
| Sortino Ratio | 85.73 | 9.74 | 6.53 | 5.33 | 34.19 | 1.89 | 21.63 |
| Beta (to BTC) | 0.32 | 0.27 | 0.76 | 0.64 | 0.45 | 0.93 | 0.46 |
| Max Drawdown | −30.7% | −29.4% | −59.2% | −71.8% | −33.5% | −73.5% | −53.9% |
| Correlation (to BTC) | 0.54 | 0.33 | 0.73 | 0.43 | 0.54 | 0.76 | 0.51 |
| Std Dev (Annualized) | 37.5% | 28.7% | 63.7% | 56.8% | 44.7% | 65.9% | 44.3% |
| Skewness | 0.41 | 1.05 | 0.58 | 1.84 | 0.78 | 0.95 | 0.86 |
On a risk-adjusted basis through Q4 2025, Algorithmic/Quant funds have the highest Sharpe ratio at 2.51. Since-inception metrics reflect performance from January 2017 through December 2025.
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
Q4 2025 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 Q4 2025 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/