Market Neutral Crypto Strategies Gain Traction Amid Low Alpha, Expert Claims Stable 15% Returns Possible

As digital asset markets mature, institutional and advanced investors are shifting away from broad market exposure and speculative pursuits in search of alpha. Instead, they’re adopting market neutral strategies in crypto trading to secure stable yields amid a highly competitive ’PvP’ environment with limited new capital inflows outside Bitcoin. Institutional strategies have traditionally exploited inefficiencies—such as pricing gaps, fragmented infrastructures, and high volatility—for arbitrage, market making, and volatility trades. However, as insiders and trading fees erode profits and genuine alpha opportunities diminish for retail investors, professionals like Santisa underscore market neutral approaches. By providing liquidity and leverage to speculators while minimizing market direction risk, disciplined investors can seek consistent returns. Santisa, leveraging eight years’ experience, reports achieving 15% annualized returns with low-risk, low-volatility strategies. Yet, experts warn that as market neutral yields compress and volatility subsides, returns may approach junk bond levels but with additional risk. To optimize risk-reward, a ’barbell approach’ blending market neutral strategies with selective speculative bets is recommended. For crypto traders, this evolution signals the need for disciplined risk management, rational strategy, and diversification as alpha becomes harder to find and market conditions favor systematic investment approaches over speculative trading.