Investors are seeking to exceed market returns, known as alpha, as traditional beta exposure to the broader crypto market becomes easily accessible. Institutions are now looking towards actively managed strategies, departing from index-style investing prevalent in digital assets. Bitcoin's low correlation with traditional assets enhances its role in diversified portfolios, while institutional demand for crypto has risen significantly. Market inefficiencies, including pricing inconsistencies and regulatory fragmentation, present opportunities for active managers. Strategies such as arbitrage, market making, yield farming, and volatility arbitrage leverage these inefficiencies to generate alpha. The digital asset ecosystem continues to expand, with innovations such as tokenized real-world assets and a growing DeFi market, indicating a transition similar to the early days of hedge funds and private equity.

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