Main Takeaways
Institutional capital is pouring into digital assets, with 86% of institutional investors holding or planning allocations in 2025, but almost all of it goes into passive products.
The gap isn’t unique to crypto. Capital raising everywhere favors size over performance, but crypto has no standardized way to discover or compare active managers at all.
Capital Connect closes that gap: an exchange-native marketplace to browse, evaluate, and allocate to active strategies, with verified data and zero platform fee.
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 held or developed plans to allocate to digital assets, and 83% had committed to increasing their holdings, according to the EY-Parthenon 2025 Institutional Investor Digital Assets Survey. Capital is flowing in.
But 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 like an ETF. That solves for passive and beta exposure, but there is no equivalent on-ramp for active crypto portfolio managers. Dedicated crypto hedge fund AUM is only $10 to $15 billion despite the broader institutional wave, according to the Crypto Insights Group's 2025 Industry Guide.
Two-thirds of institutional investors allocate to digital assets, but over one-third keep exposure below 2%, and 41% said they would increase exposure if operational and compliance risks were reduced, as per the 7th Annual Global Crypto Hedge Fund Report.
This is not a demand problem. It’s an infrastructure problem. And it’s exactly what Binance Capital Connect was built to address.
The Problem Is Older Than Crypto: Top Managers Get 80% of Capital
Capital raising in traditional finance is already relationship-driven and top-heavy. Over 85% of institutional investors source new manager relationships through personal networks or prime broker capital introduction desks, per AIMA research on emerging manager capital raising. The top 20% of managers are responsible for about 80% of capital deployment, per AIMA's Private Credit Investor Forum findings.
The irony: emerging managers with sub-$500 million AUM delivered 16.23% annualized returns over 2020 to 2025, compared to 8.53% for larger players, according to IG Prime. They outperform, but they can’t raise. The system rewards size over signal.
In crypto, the gap is even wider. There is no prime broker capital introduction equivalent. No standardized performance data or benchmarking framework. 47% of crypto fund managers confirmed rising investor demand in 2025, but distribution channels haven’t kept pace, per AIMA. Many rely on Telegram, personal networks, and conferences to find capital.
Three Gaps That Need Closing
Discovery
Over 85% of institutional investors source new managers through personal networks or prime brokers, per AIMA. In crypto, there is no equivalent. Investors have no centralized marketplace to browse, compare, and evaluate strategies on standardized metrics.
Diligence
There is no standardized performance data or benchmarking framework across crypto fund managers. Investors can’t compare NAV, Sharpe ratio, maximum drawdown, or gross vs net returns on equal footing.
Distribution
Emerging managers outperform larger ones by nearly 2x, per IG Prime, yet they can’t raise capital. In crypto, no institutional channel exists for independent trading teams to reach verified investors.
The Marketplace That Closes All Three: Capital Connect
Capital Connect is an open, exchange-native strategy marketplace on Binance that connects verified and eligible institutional investors with independent trading teams. It covers active strategies across digital and traditional assets, with full performance transparency and zero platform fee.
Investors browse multiple trading teams and strategy types in one place, with Binance-verified performance data displayed side by side: NAV, Sharpe ratio, Sortino ratio, max drawdown, and gross vs net returns. No Telegram groups, no conference matchmaking, no third-party platforms to navigate.
When the market changes, investors can switch strategies on the same platform. For trading teams, Capital Connect provides access to a verified institutional investor base already embedded in the Binance ecosystem.
Getting Started with Capital Connect
For Trading Teams
Complete Binance KYB verification
Contact your dedicated Account Manager to apply for access to Capital Connect with license proof
Binance Compliance and Ops review all applications before activation
For Investors
Capital Connect is available to KYC or KYB-verified Binance users who meet one of the following criteria: VIP Level 3 or above, total assets on Binance of $1,000,000 USD equivalent or above, or external asset proof of $1,000,000 USD submitted for review.
How it works:
Browse: Explore active strategies across digital and traditional assets from a curated selection of independent trading teams, with full performance data
Evaluate: Compare NAV, Sharpe ratio, max drawdown, and gross vs net returns
Invest: Allocate with zero platform fee
Monitor and switch: Track verified performance data across your allocated strategies, and switch or adjust your allocations as market conditions evolve. All on Binance.
Final Thoughts
The institutional wave into digital assets isn’t slowing down. It’s accelerating. But without infrastructure for active strategy allocation, capital will continue to flow into passive products by default, and the managers best positioned to generate alpha will continue to struggle for capital.
The managers who outperform shouldn’t be the ones struggling to raise. Closing that gap takes more than another fund or partnership. It takes a marketplace built to make performance visible and capital movable. Performance should be the thing that raises capital, not proximity to it. Capital Connect makes that possible.
Further Reading
Binance Capital Connect: The Marketplace for Investment Strategies
One Ecosystem for Crypto Strategy Discovery, Allocation and Management
Binance Launches Portfolio Accounts — Enabling Trading Teams to Pool Investor Assets
Disclaimer: Capital Connect is a connection and facilitation service presented on an “as is” and “as available” basis without representation or warranty of any kind. This service is only accessible to qualified persons and may not be available in your region. Binance is not liable or responsible for the completeness or accuracy of any information regarding any Trading Team presented 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.