Crypto exchange Gate’s Private Wealth Management Report for May 2026 revealed that quantitative trading strategies delivered positive returns even as major digital assets like Bitcoin and Ether declined amid rising geopolitical tensions. Bitcoin dropped roughly 2.9% in May, and Ether fell more than 11%, according to Gate Research, while US equities extended their rally with the S&P 500 notching nine consecutive weekly gains — its longest streak since December 2023.
The report noted that 90% of Gate’s quant-based fund strategies posted profits during the month. A standout was the USDT-denominated Interstellar Hedging solution, which achieved a total profit of 18.6% and a perfect win rate across all 23 measurement periods. Traditional hedge funds also performed well; stock-picking funds gained 5.35% on average, surpassing the MSCI Total Return Index’s 4.55%, while multi-strategy giants like Citadel and Millennium Management returned 1.43% and 2.4%, respectively.
Gate’s analysis suggested systematic, market-neutral approaches continued to attract capital during periods of uncertain risk appetite. The maximum drawdown for both USDT and BTC strategies remained significantly lower than Bitcoin’s price decline. This divergence underscored a risk-off shift in crypto markets, with investors favoring US tech equities while Bitcoin and Ethereum faced selling pressure.
The report also highlighted that implementing guidelines under the GENIUS Act is pushing stablecoin regulation closer to practical enforcement. Projections by Citi and Brookfield indicate stablecoin circulation could grow fifteenfold by 2030, driven by clearer rules and stringent reserve requirements. Deloitte’s Banking and Capital Markets Outlook 2026 warned that the introduction of payment stablecoins within the GENIUS Act framework will reshape deposit flows and create competition for existing payment systems, forcing banks to reassess their roles in issuance, custody, and processing.
For the crypto sector, the regulatory shift could be a double-edged sword: it may entice institutional players on the sidelines but also raise compliance costs for issuers and exchanges operating in US jurisdictions.
