Key points

  • Institutional capital is flowing into digital assets in large amounts: 86% of institutional investors held or planned to make allocations in 2025, but almost all of it is directed toward passive products.

  • The gap is not unique to crypto. Capital raising everywhere favors size over performance, but the crypto sector has no standardized way to discover or compare active managers.

  • Capital Connect closes that gap: a strategy marketplace integrated into an exchange where users can explore, evaluate, and allocate capital to active strategies, with verified data and no platform fees.

Note: This is a general announcement. Certain products and services may not be available in your region. Terms and conditions apply. 

By 2025, 86% of institutional investors had maintained or developed plans to allocate capital to digital assets, and 83% had committed to increasing their holdings, according to the 2025 EY-Parthenon Institutional Investor Digital Assets Survey. Capital is flowing.

However, almost all of it is going into passive products. The same EY survey found that 81% of institutional investors prefer spot exposure through a registered vehicle, such as an ETF. This addresses passive and beta exposure, but there is no equivalent access route for active crypto portfolio managers. Specialized crypto hedge funds have just 10 to 15 billion USD in assets under management (AUM), despite the broader institutional wave, according to the Crypto Insights Group 2025 Industry Guide.

Two-thirds of institutional investors allocate capital to digital assets, but more than a third have less than 2% exposure, and 41% said they would increase their exposure if operational and compliance risks were reduced, according to the 7th Annual Global Crypto Hedge Fund Report.

This is not a demand problem. It is an infrastructure problem. And that is exactly what Binance Capital Connect was built to solve.

The problem predates crypto: top managers receive 80% of the capital

Fundraising in traditional finance already depends on relationships and is highly concentrated. More than 85% of institutional investors build relationships with new managers through personal networks or prime broker capital introduction desks, according to AIMA research on fundraising for emerging managers. The top 20% of managers account for approximately 80% of capital deployment, according to findings from the AIMA Private Credit Investor Forum.

The irony: emerging managers with less than 500 million USD in AUM generated annualized returns of 16.23% between 2020 and 2025, compared with 8.53% for larger firms, according to IG Prime. They perform better, but they can’t raise capital. The system rewards size over signal.

In crypto, the gap is even wider. There is no equivalent to prime broker capital introductions. Nor are there standardized performance data or benchmarks. 47% of crypto fund managers confirmed increased investor demand in 2025, but distribution channels have not evolved at the same pace, according to AIMA. Many rely on Telegram, personal networks, and conferences to find capital.

Three gaps to close

Discovery

More than 85% of institutional investors find new managers through personal networks or prime brokers, according to AIMA. In crypto, there is no equivalent. Investors lack a centralized marketplace to explore, compare, and evaluate strategies using standardized metrics.

Due diligence

There are no standardized performance data or benchmarks across crypto fund managers. Investors cannot compare NAV, Sharpe ratio, maximum drawdown, or gross versus net returns on a like-for-like basis.

Distribution

Emerging managers outperform larger firms by nearly 2x, according to IG Prime, but they can’t raise capital. In crypto, there is no institutional channel for independent trading teams to reach verified investors.

The marketplace closing all three gaps: Capital Connect

Capital Connect is an open strategy marketplace integrated into a Binance exchange that connects eligible, verified institutional investors with independent trading teams. It covers active strategies across digital and traditional assets, with full performance transparency and no platform fee.

Investors can explore multiple trading teams and strategy types in one place, with Binance-verified performance data displayed side by side: NAV, Sharpe ratio, Sortino ratio, maximum drawdown, and gross versus net returns. No Telegram groups, conference meetings, or third-party platforms to navigate.

When the market shifts, investors can switch strategies on the same platform. For trading teams, Capital Connect provides access to a base of verified institutional investors already part of the Binance ecosystem.

How to get started with Capital Connect

For trading teams

  1. Complete Binance KYB verification

  2. Contact your assigned Account Manager to request access to Capital Connect and submit proof of licensing

  3. Binance Compliance and Operations teams review all applications before activation

For investors

Capital Connect is available to Binance users with KYC or KYB verification who meet one of the following criteria: VIP 3 or above, total assets on Binance equivalent to or greater than 1,000,000 USD, or external proof of assets worth 1,000,000 USD submitted for review.

How it works:

  1. Explore: Discover active strategies across digital and traditional assets from a carefully selected group of independent trading teams, with comprehensive performance data

  2. Evaluate: Compare NAV, Sharpe ratio, maximum drawdown, and gross versus net returns

  3. Invest: Allocate capital with no platform fee

  4. Monitor and switch: Monitor verified performance data for your allocated strategies and switch or adjust your allocations as market conditions evolve. All on Binance.

Final thoughts

The institutional wave into digital assets is not losing momentum. It is accelerating. But without infrastructure for allocating to active strategies, capital will continue to flow into passive products by default, while the managers best positioned to generate alpha will continue to struggle to raise capital.

Outperforming managers shouldn’t be the ones struggling to raise capital. Closing that gap requires more than another fund or partnership. It requires a marketplace built to make performance visible and capital easier to move. Performance should attract capital, not proximity to it. Capital Connect makes this possible.

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Disclaimer: Capital Connect is a matching and facilitation service provided “as is” and “as available,” without representations or warranties of any kind. This service is available only to qualified persons and may not be available in your region. Binance assumes no responsibility for the completeness or accuracy of information relating to any trading team featured here. No information presented on or through Capital Connect should be construed as financial advice, a personal recommendation, or an offer or solicitation to buy or sell any investment. For more information, see our Terms of Use and Risk Warning.