Executive Summary

This report presents an index benchmark analysis developed by 1Token in collaboration with 11 crypto trading teams. Among these partners, nine teams contributed Funding Arbitrage strategies, and four teams (with some overlap) provided Long Short strategies.

The comprehensive study evaluates two distinct strategy indices for November 2025, delivering key insights into both Funding Arbitrage and Long Short strategy performance metrics, such as period returns, maximum drawdown, unit leverage returns, and asset concentration, aiming to provide a reference for the market.

Parameters

• Quote source: CMC
• Granularity: Daily
• Index start time: November 1st, 2025 at 00:00 UTC
• Cut-off-time: 0:00 UTC+0
• Sample Exchange Distribution: : Binance, OKX, Bybit, Gate, LTP Rapidx
• Accum. NAV calculation method: TWR (Time-Weighted Return)
• Risk-free rate: 4.5%
• Daily Minimum Acceptable Return (MAR): 0

Note: The selection of the exchanges - Binance, OKX, Bybit and Gate- may influence overall performance, as these platforms have different mechanisms such as fees, commissions, and slippage. This report does not take the mechanism difference into consideration, assuming no confounding variables affect the comparison.

Reference

Thanks to the following leading crypto trading teams for collaborating with 1Token on our first crypto strategy-related performance analysis:

• Big Candle
  • Funding Arb
  • Big Candle Capital (BCC), founded in 2021, focuses on market-neutral, high-frequency quantitative arbitrage trading. The firm operates around its core strategy suite, Coinstar, targets high-frequency, low-directional arbitrage opportunities in crypto markets, utilizing multi-dimensional spread identification and strict risk controls to isolate directional exposure.
  • The team brings extensive experience from leading cryptocurrency exchanges, tier-1 financial institutions, and top universities, with hands-on expertise in matching engines, trading systems, wallet infrastructure, and risk control frameworks.
  • Its flagship crypto arbitrage fund was launched in July 2022 and currently manages approximately USD 200 million, with a track record that consistently outperforms major market benchmarks.
• Binquant
  • Funding Arb
  • Founded in 2018, Binquant focuses on quantitative development and asset management in the digital asset market and is now one of the largest digital asset managers. The main strategies include market-neutral arbitrage, CTA, high frequency, and DeFi. Main clients include hedge funds, VC funds, large financial institutions, family offices, and exchanges for asset accretion.
• Grandline
  • Funding Arb and Long Short
  • GrandLine Technologies is a systematic multi-strategy trading firm established in 2018. Grandline specializes in deploying mid-frequency market-neutral strategies across major digital assets on both centralized and decentralized exchanges. With decades of expertise in quantitative portfolio management , the team is recognized for its exceptional research and risk management process, earning accolades from esteemed institutions like Hedgeweek and HFM.
• KFQuant
  • Long Short
  • Founded in 2017, KFQuant is a top low-latency trading systems provider from traditional finance, powering a significant share of multi-billion-dollar hedge funds and proprietary trading desks. Specializing in ultra-fast systems and cross-sectional multi-factor strategies—hallmarks of traditional finance. We integrate tick-by-tick data, alternative alpha signals, streaming-learning models, and automated portfolio optimization into a seamless research-to-execution pipeline. Our market-neutral derivatives long-short strategies deliver high capacity and Sharpe ratios, combining institutional-grade infrastructure with cutting-edge quantitative frameworks to sustain uncorrelated returns across cycles.
• Lattice Research
  • Long Short
  • Lattice Research is a specialized asset manager focused on systematic trading strategies. Founded in 2022, we bring over 10 years’ experience from traditional finance to the crypto markets.
  • The team comprises talents from leading institutions such as JP Morgan, Millennium, and HRT. Backed by multi-billion dollar funds and family offices, we have established a solid foundation in advanced machine learning technologies, low-latency infrastructure, and a comprehensive database coverage.
  • At the core of our culture is a research-driven approach. We prioritize risk management over pure return generation, with the goal of delivering consistent, risk-adjusted performance for our investors.
• Lepton
  • Funding Arb
  • Founded in 2021 by seasoned quant traders with 10+ years of arbitrage expertise in traditional finance, we specializes in systematic crypto arbitrage strategies. Our proprietary low latency execution system enables algorithmic capture of funding rate arbitrage, basis arbitrage, and market making opportunities within CEX venues. Through adaptive risk frameworks and dynamic exposure management, we maintain rigorous operational discipline to proactively mitigate tail risks while exploiting transient market inefficiencies.
• Luxtech
  • Funding Arb
  • Luxtech Capital Group Ltd was established in 2018 by a group of fund managers from both domestic and international backgrounds. Focused on the meticulous study of quantitative strategies, we utilize mathematical models and computer technology to discover robust quantitative strategies that transcend market fluctuations. Our expertise lies in asset management for digital assets. Shareholders and team members are derived from the professional traditional asset management industry, with a cumulative managed fund scale exceeding 10 billion RMB, and their collective experience is traceable. Research personnel hold Master's and Ph.D. degrees from renowned universities such as the University of Illinois at Urbana-Champaign, Tsinghua University, and Shanghai Jiao Tong University. They have previously worked in core departments at Akuna Capital and Citadel, demonstrating solid foundational knowledge and extensive experience in the quantitative industry.
• Pythagoras
  • Funding Arb and Long Short
  • Established in 2014, Pythagoras manages a suite of crypto funds based on quantitative modeling. As one of the longest-running crypto hedge funds, it is known for delivering outstanding returns in both bearish and bullish market cycles. Using systematic, non-discretionary, and automated trading strategies, Pythagoras specializes in market-neutral and dollar-neutral strategies to consistently outperform the crypto market.
• Tackzone
  • Funding Arb
  • Tackzone Research is a quantitative research and strategy management fund focused on the digital asset market. We are committed to delivering stable and sustainable return solutions for investors through systematic strategies, rigorous risk controls, and efficient execution.
  • With long-term expertise in crypto derivatives and arbitrage, the team conducts quantitative research across funding rates, spread structures, liquidity conditions, and market microstructure, and has built an automated trading system spanning multiple exchanges and diverse strategy types.
  • We have established a full end-to-end closed loop covering strategy R&D, backtesting and evaluation, live trading operations, and risk management, ensuring disciplined implementation and continuous improvement across the entire investment lifecycle.
• Trade Terminal
  • Funding Arb
  • Trade Terminal (TT), a crypto quantitative hedge fund, delivers high Sharpe quantitative strategies, market-making services, early-stage funding, and consulting. Named Binance's TOP 2024 Liquidity Provider of the Year, TT operates globally across spot and derivatives markets, leveraging advanced technology and strong risk management to optimize performance.
• ZenX
  • Funding Arb
  • ZenX was founded in 2019 and is headquartered in Hong Kong. ZenX is an innovative and established crypto trading firm with a focus on cutting-edge technology, data-driven solutions, and algorithmic modeling. We aim to build long-term relationships with clients by offering tailor-made services with professional trading expertise.

Collaboration teams for this study primarily come from Asia. In the future, we hope to expand the diversity of our sample to include teams across various regions around the world. If you'd like to be part of our benchmark study, please feel free to contact our partnership manager at joey.shi@1tokentech.com.

About 1Token

1Token(https://1token.tech/) is a SOC2 Compliant software for institutional Crypto Portfolio, Risk, Operations, Accounting and Lending Management, named Hedgeweek's 2024 "Portfolio Management Solution of the Year", serving 80+ top-tier institutional clients in the crypto industry, including Family Offices, SMA Allocators, Multi-Strategies Trading Funds, DMA Prime Brokers, Asset Managers, Lending Institutions, Fund Admins & Auditors across the US, EU, and APAC, collectively managing over $20 billion in assets.

For general inquiries like authorization requests of the report, product demo, or general collaboration opportunities, please email service@1token.trade.

Disclaimer

The information contained in this report is provided by 1Token for general informational purposes only and does not constitute professional advice. While every effort has been made to ensure the accuracy of the information, no warranty or representation, express or implied, is made regarding its completeness or reliability. The contents of this report reflect the views and opinions of the author(s) as of the date of publication, and may be subject to change without notice.

The reader should independently verify any information or conclusions presented herein before making decisions based on the report. 1Token and any affiliated parties are not responsible for any actions taken or not taken as a result of reading this report.

This report may contain forward-looking statements, estimates, and projections based on current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. 1Token assumes no obligation to update or revise any forward-looking statements.