Crypto Hedge Funds Face Worst Year Since 2022 Amid Market Turmoil

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Crypto market funds saw a 23% loss in 2025, the worst since 2022. The October 10 auto-deleveraging event and basis trade decay hit institutional crypto market funds hard. Arbitrage gains vanished as liquidity bursts surged. Market-neutral strategies returned 14.4% by hedging. The S&P 500’s de-coupling and regulatory delays worsened the crypto market update.
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