Market Snapshot: Relative-Value Gains in a Turbulent Start to 2026
Crypto markets opened 2026 with losses and a defensive tilt as price swings intensified. A February 18 survey by Presto Research and Otos Data shows investors reallocating toward relative-value and market-neutral trades to shelter capital from sharp swings.
What the data shows
The survey tracks a broad set of liquid crypto hedge funds. On average, funds declined by 1.49 percent in January, extending a streak of negative results across both fundamental and quantitative strategies.
- Fundamental funds fell about 3.01 percent in January
- Quantitative funds declined about 3.51 percent
- Market-neutral funds rose roughly 1.6 percent
- Over six months, market-neutral strategies are up nearly 5 percent, while fundamental funds are down more than 24 percent
Bitcoin slid roughly 31 percent in that period, Ethereum about 23 percent, and Solana around 47 percent, underscoring a broad risk-off environment even as hedging strategies gained traction.
Analysts say the dispersion in results points to a defensive posture rather than a carefree risk-on bet. The data show traders leaning into hedges when rallies faltered and rotating toward tactical fades as ETF flows fluctuated and larger holders repositioned.
Joao Wedson, founder of the research firm Alphractal, described a market where long-term holders remain resilient even as short-term liquidity tightens. A Presto Research analyst added that the pattern fits a cautious early-year tempo, with hedges taking the place of outright directional bets.
Why relative-value is gaining ground
Industry observers note that the move toward relative-value and market-neutral trades reflects a pragmatic response to macro uncertainty and crypto-specific volatility. These strategies seek to profit from mispricings and cross-asset relationships rather than betting on any single asset’s direction.
The sentiment is echoed by portfolio managers who say hedged approaches can capture risk premium across token pairs and varying liquidity regimes, even as the broader market remains choppy. The result is a more balanced exposure profile, though still sensitive to macro headlines and sector developments.
NFTs and the 2026 investing question
As funds dodge directional bets, many investors ask how to invest in NFTs 2026. Industry watchers warn that NFT markets have diverged by quality and utility, with liquidity concentrated in a handful of blue-chip projects and renewed attention on gaming and metaverse experiences.
- Provenance, royalty structures, and real utility drive value
- Diversified exposure across top marketplaces can mitigate idiosyncratic risk
- Regulatory clarity and tax rules are still evolving, shaping holders’ strategies
For readers wondering how to invest in NFTs 2026, experts stress a measured, research-driven approach. How to invest in NFTs 2026 often hinges on risk tolerance, time horizon, and the ability to separate hype from sustainable value. Beyond high-flyer collectibles, investors are weighing NFT-backed access passes, tokenized real assets, and creator collaborations as ways to embed NFT exposure in a broader portfolio.
What this means for 2026 portfolios
The data imply a broader tilt toward hedged strategies that can weather volatility and mispricing. While market-neutral funds have posted gains, the crypto space remains vulnerable to shocks from macro policy, regulatory headlines, and sector-specific dynamics.
- Investors are increasingly blending relative-value ideas with selective directional bets in moderation
- Liquidity and risk controls are critical in volatile markets
- Ongoing due diligence on NFT valuations and use cases remains essential for retail buyers
Takeaways for investors in 2026
The early 2026 environment tests hedging discipline and selective exposure to riskier assets. Relative-value strategies have shown resilience amid volatility, a trend that could shape how funds allocate to both crypto assets and NFT exposures in the months ahead. For readers asking how to invest in NFTs 2026, the emphasis remains on rigorous research, diversification, and patience as markets evolve.
Bottom line
The start of 2026 paints a clear picture: relative-value and market-neutral approaches are outperforming traditional directional bets in a volatile crypto landscape. This shift is guiding fund flows, risk management, and even discussions about how to invest in NFTs 2026 as investors seek steadier footing in a fast-moving market.
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