# Directional Crypto Funds Gain 1.9% as Bitcoin (BTC) Falls 7.2% in October

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/55405
Published: 2026-11-12T12:56:23.000Z
Updated: 2026-11-12T12:56:23.000Z
Section: Investing

> Market-neutral funds averaged a 1.0% gain; allocators ranked asset security ahead of historical performance and institutional reputation.

Directional crypto funds on Binance’s Capital Connect platform averaged a 1.9% gain in October as Bitcoin fell 7.2%, while market-neutral funds returned 1.0% over the month, a test of active exposure during a downturn.

The investor count in directional funds reached 52 in October, returning to its May level after dropping to 36 in July. Allocators typically reduce directional exposure during market pullbacks and add it back after volatility and liquidity stabilize. Results varied widely: the gap between the best and worst directional funds was about eight times the spread among neutral strategies.

As of Oct. 31, market-neutral, statistical-arbitrage and traditional finance-style multi-strategy funds accounted for 92.1% of platform AUM. Directional funds made up 44.3% of the fund count but held 6.7% of assets. The average investment ticket for a neutral strategy was about 11 times the directional average.

U.S. spot Bitcoin (BTC) and Ether (ETH) ETFs held about $111 billion in combined assets as of Oct. 31. Crypto hedge funds averaged $132 million in assets under management, and 91% managed less than $1 billion. ETFs package exposure with custody, audits, daily net asset value pricing and reporting familiar to institutions. Active strategies have not reached the same level of institutional integration. Among surveyed institutions, 81% preferred registered, compliant products for spot exposure.

Investors seeking active crypto funds often find managers through Telegram groups, conferences and personal referrals. Without a common framework for comparing performance and benchmarks, they can have difficulty verifying managers’ audited financial statements, custody arrangements and service-provider qualifications.

Asset security ranked ahead of historical performance and institutional reputation for 80% of interviewed allocators. All allocators interviewed said verified exchange data could strengthen due diligence.