Insights from Institutional Research in Crypto

“Alpha” is a term used in finance to denote the excess return of an investment relative to the return of a benchmark index or market. It represents the skill of an investment manager or the investment strategy itself in generating returns above the market’s performance. In other words, alpha measures the performance of an investment that cannot be explained by the market’s movements alone. Positive alpha indicates that the investment has outperformed the market, while negative alpha suggests underperformance.