U.S. Spot Bitcoin and Ether ETFs Reach $111 Billion as Hedge Funds Average $132 Million

U.S. spot exchange-traded funds holding Bitcoin (BTC) and Ether (ETH) had about $111 billion in combined assets as of Oct. 31, 2026. Active crypto hedge funds averaged $132 million in assets under management, while 91% had less than $1 billion.

The figures compare different parts of the market and do not track the same investors’ choices. On Capital Connect, directional strategies accounted for 44.3% of funds but 6.7% of platform assets. Market-neutral, statistical-arbitrage and traditional-finance-style multi-strategy funds together held 92.1% of the platform’s assets. The average single investment in neutral strategies was about 11 times larger than one in directional strategies.

A separate survey found that 81% of institutions preferred registered, compliant products for spot exposure. In allocator interviews, 80% placed asset security ahead of historical performance and institutional reputation. Interviewees also emphasized the value of verifiable exchange trading records in due diligence. Difficult-to-verify track records and compliance checks, including know-your-customer and anti-money-laundering reviews, can slow fundraising.

October returns were positive on average for both directional and market-neutral funds, even as Bitcoin fell 7.2%. Directional funds gained an average 1.9%, while market-neutral funds gained 1%.

In that sample, 55% of directional funds posted gains, compared with nine of 10 market-neutral funds. The performance range from the best to worst directional fund was about eight times the range among market-neutral funds. The top quarter of directional funds averaged a 69% return since inception.

The figures show a wide range of outcomes among active strategies. Allocators interviewed placed emphasis on drawdown control alongside security and verifiable records when assessing managers.