Cryptocurrency investment fund returns to profit in December despite overall market slump

Although the cryptocurrency market struggled throughout December, a small number of institutional investors managed to end the year in the black.

New on-chain data from analytics platform Nansen shows that while prices remain under pressure, several large cryptocurrency funds generated millions of dollars in realized gains but turned to aggressive selling as the month progressed.

Elite fund secures highest profits even in market downturn

Market maker Wintermute emerged as the most profitable fund in December, posting realized gains of about $3.17 million, Nansen said.

Dragonfly Capital followed suit, with profits spread across multiple wallets totaling $1.9 million, $1 million, and $990,000.

IOSG and Longling Capital also ranked highly. Taken together, these trends suggest that the gains were concentrated in a repeat group of highly active institutional traders rather than isolated one-off wallets.

“Profits are concentrated in a small number of repeat funds rather than one-time wallets,” Nansen noted, highlighting how consistent execution and active trade management have isolated institutional winners from broader market downturns.

Arrington, Pantera, and Polychain are also included in Nansen’s 30-day dataset from five blockchain networks, each with varying profitability.

In the profit ranking for December 2025, Wintermute topped the list with $3.17 million, followed by several Dragonfly Capital wallets. Nansen

December was a difficult month for most crypto participants as volatility increased and sentiment weakened towards the end of the year.

Despite this background, Wintermute and Dragonfly Capital capitalized on the opportunities presented by short-term disruption and liquidity.

Their performance highlights the benefits of scale, sophisticated trading infrastructure, and multi-chain monitoring during times of market stress.

Dragonfly’s strategy is distinguished by its diversification across wallets, allowing the fund to capture upside in a variety of positions while diversifying risk.

On the other hand, Wintermute’s dominance reflects its role as a major liquidity provider that can profit from volatility rather than suffer from it.

IOSG and Longling Capital also posted notable gains, making them among the most profitable funds of the month. Taken together, these data highlight the organization’s resilience at a time when retail traders were barely struggling to stay afloat.

Aggressive profiteering shapes on-chain behavior

But Nansen’s on-chain tracking shows that these same profitable funds are now leaning toward selling rather than accumulating.

On December 26, QCP Capital deposited 199.99 ETH, worth approximately $595,929, onto the Binance exchange, a move typically associated with preparing assets for sale.

QCP Capital transferred 199.99 ETH worth $595,929 to Binance on December 26, 2025. Nansen

Wintermute is also aggressive on the sales front. Social media commentary has accused the company of aggressively selling Bitcoin and Ethereum during December’s volatility, but on-chain data confirms that Wintermute reduced its exposure after building positions at the beginning of the month.

This activity is more in line with profit taking and risk management rather than passive holding.

Dragonfly Capital similarly reduced its position in Mantle (MNT). In seven days in December, the fund deposited 6 million MNT tokens worth approximately $6.95 million into Bybit.

Despite these sales, Dragonfly still holds 9.15 million MNT tokens (worth approximately $10.76 million), suggesting a partial exit rather than a complete exit.

The contrast between December’s solid gains and rising selling pressure points to a dual organizational strategy.

• Take advantage of volatility when opportunities arise,
• Quickly avoid risks in response to changing circumstances.

For professional funds, year-end selling could also reflect portfolio rebalancing, capital preservation, or preparation for new allocations in early 2026.

Continued selling by top-performing funds could weigh on short-term markets, but it could also be a sign of discipline rather than bearish belief.

The article Crypto Investment Funds Gain in December Despite Overall Market Weakness was first published on BeInCrypto.