Moon Pursuit Capital Launches $100M Market-Neutral Crypto Fund to Manage Risk

Moon Pursuit Capital has introduced a $100 million market-neutral crypto fund designed to mitigate risk in the notoriously volatile cryptocurrency markets. By employing quantitative, algorithm-driven strategies that balance long and short crypto positions, the fund aims to attract institutional investors seeking diversification and risk management solutions.

What happened

Moon Pursuit Capital officially launched its $100 million market-neutral crypto fund in December 2025, as confirmed by a CoinDesk report and the firm's own press release. The fund utilizes quantitative strategies, including algorithmic trading models, to maintain market neutrality. This is achieved by balancing long and short positions across various crypto assets, aiming to generate returns independent of the overall market direction.

The firm targets institutional investors, emphasizing the fund’s potential to manage volatility and provide portfolio diversification benefits within the crypto asset class. This approach aligns with a broader trend documented in PwC’s 2025 Institutional Crypto Investment Report, which highlights growing institutional interest in crypto products that offer risk mitigation features such as market-neutral strategies.

Market-neutral funds, by design, seek to hedge systemic market risk and reduce exposure to directional price swings. Moon Pursuit Capital’s fund represents a relatively rare example of a quantitative market-neutral vehicle in the crypto space, which is predominantly populated by directional hedge funds, according to Bloomberg Intelligence’s Crypto Hedge Fund Landscape 2025 report.

Industry observers interpret the launch as a potential innovation that could appeal to risk-averse institutional investors. PwC notes that the use of quantitative models to dynamically hedge market exposure meets institutional demands for transparency and risk controls, which may support further integration of crypto assets into diversified portfolios. Bloomberg Intelligence adds that market-neutral crypto strategies could reduce correlation with traditional asset classes, enhancing diversification.

However, alternative perspectives caution that the effectiveness of quantitative models in crypto markets may be challenged by liquidity limitations, regulatory uncertainty, and rapid regime shifts, as discussed in the Harvard Business Review’s 2025 analysis of quantitative strategies in crypto.

Why this matters

The launch of Moon Pursuit Capital’s market-neutral crypto fund is significant because it addresses two persistent barriers to institutional crypto adoption: volatility and risk management. Crypto markets have historically exhibited pronounced price swings and episodic liquidity stresses, deterring conservative investors. By employing market-neutral strategies, the fund aims to deliver returns less dependent on broad market movements, providing a potential avenue for institutions to gain crypto exposure without assuming large directional risks.

This approach also aligns with a growing institutional preference for investment products that enhance portfolio diversification through low correlation with traditional assets. If successful, Moon Pursuit Capital’s fund could fill a niche in the crypto investment landscape, which currently lacks many quantitatively driven, market-neutral options.

Moreover, the fund’s emphasis on algorithmic trading models and dynamic hedging fits into broader trends of increasing sophistication in crypto asset management. Enhanced risk controls and transparency, as highlighted by PwC, may help bridge gaps between traditional finance and crypto markets, potentially accelerating institutional integration.

Nevertheless, the fund’s impact will depend on its ability to navigate the unique challenges of crypto markets, including regulatory complexity and market structure idiosyncrasies. The broader significance of the fund lies in its potential to demonstrate the viability of market-neutral quantitative strategies in an asset class still developing its institutional infrastructure.

What remains unclear

Despite the confirmed launch and broad strategy outline, several important details about Moon Pursuit Capital’s market-neutral crypto fund remain undisclosed or unclear. The exact mechanics of the quantitative model—specifically how it adjusts to sudden market shocks or black swan events—are not detailed in public disclosures or media reports.

There is no publicly available information on the fund’s performance benchmarks or specific risk management metrics, making it difficult to assess how effectiveness will be evaluated. Similarly, key operational details such as fee structures, liquidity terms, leverage usage, and counterparty risk management are absent from available sources.

Regulatory compliance and jurisdictional risk management are critical considerations for crypto funds, yet no explicit information has been provided on how the fund addresses these evolving challenges. Furthermore, there is no historical backtest or live track record of the fund’s quantitative strategies prior to launch, and no independent third-party audits or verifications have been disclosed.

Finally, the response of institutional investors to the fund remains unknown, as there are no public statements or commitments reported to date. This leaves open questions about the fund’s practical impact on institutional crypto adoption.

What to watch next

Disclosure of detailed quantitative model mechanics, particularly risk controls for sudden market moves or black swan events in crypto.
Publication of performance data or benchmarks to assess the fund’s market-neutral efficacy over time.
Information on fee structures, liquidity provisions, and leverage policies that influence institutional investor participation.
Clarifications on regulatory compliance frameworks and how the fund manages jurisdictional risks amid evolving crypto regulations.
Reports of institutional investor commitments or feedback that indicate market reception to this type of crypto risk management product.

Moon Pursuit Capital’s $100 million market-neutral crypto fund marks a notable development in the evolution of crypto investment strategies, aiming to reconcile volatility concerns with the desire for diversification. However, substantial gaps remain in public information about the fund’s operational specifics, risk management robustness, and institutional uptake. These unknowns underscore the need for ongoing transparency and data disclosure to evaluate the fund’s true contribution to the institutional crypto landscape.

Source: https://www.coindesk.com/business/2025/12/17/moon-pursuit-capital-launches-usd100-million-market-neutral-crypto-fund. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.