Active Management in Spot Crypto and Derivatives

Regulated futures, crypto ETFs, and institutional participation are reshaping the market structure of major digital assets. For most of Bitcoin’s history, a buy-and-hold investment in BTC/USD has been highly profitable, returning 124% in 2016, more than 1,300% in 2017 and more than 300% in 2020, with further triple-digit years in 2023 and 2024, against losses of 74% in 2018 and 64% in 2022.

Such returns have often made those offered by hedge funds on alternative assets less attractive to long-term Bitcoin holders, particularly given the high volatility of those assets in recent years and the increasingly complex and uncertain global geopolitical environment.

The listing of Bitcoin futures on the CME and the subsequent launch of ETFs have raised expectations for the asset’s medium-term growth and dispelled concerns about its long-term sustainability. Moreover, the Trump administration now views Bitcoin as a fundamental strategic asset and a pillar of US financial leadership, marking a radical shift from the past, when it was described as a highly volatile and dangerous asset.

Yet, despite these significant developments, Bitcoin’s performance was -6.30% in 2025 and -26% in 2026. What, then, can we say about active management in spot crypto and derivatives?

Active Strategies Versus the Bitcoin Benchmark

Many active management strategies are now performing far better than the standard set by the digital currency par excellence.

These are primarily market-neutral strategies, but not exclusively: there are also many examples of directional strategies that are significantly outperforming Bitcoin.

Regardless of Bitcoin’s current downtrend, specific factors have transformed the behavior not only of Bitcoin but also of all the major cryptocurrencies, including Ethereum, XRP, Solana, Cardano, Avalanche, and Chainlink.

What Has Changed?

What has really evolved is the market infrastructure surrounding major digital assets. The listing of futures contracts on the CME for Ethereum, XRP, Solana, Cardano, Avalanche, and Chainlink, together with the launch of crypto ETFs, has brought crypto markets more firmly into centralized and regulated venues.

The formal recognition of crypto markets, including within centralized and regulated markets, has inevitably increased liquidity and trading frequency, attracted many more institutional investors, and boosted algorithmic trading. As a result, major cryptocurrencies are now speculative markets offering countless opportunities, including in the short term, in much the same way as derivatives on indices or currencies.

This new landscape offers Bitcoin investors a range of new opportunities and investment tools. Alongside traditional dedicated hedge funds, actively managed certificates have emerged — typically issued in Switzerland — as have investment funds denominated directly in Bitcoin.

The latter option is likely to become the most popular and widely used in the near future, as it allows investors to hold Bitcoin without selling it, while simultaneously capitalizing on trading returns, particularly those generated by algorithmic trading, during the so-called ‘winter’ periods in the crypto world.

A New Era for Active Crypto Management

Active management in crypto markets is no longer a niche pursuit. The structural changes that have taken place, namely the arrival of regulated futures, the launch of ETFs, and the growing presence of institutional investors and algorithmic trading, have fundamentally transformed the behavior of all major cryptocurrencies. In this new environment, the investor who combines long-term Bitcoin exposure with systematic, actively managed strategies is best positioned to generate returns across all market cycles, including during the crypto ‘winters’ that have historically tested the conviction of even the most committed holders.