Institutional capital from ETFs and structured products has compressed traditional arbitrage opportunities in the crypto market. This, combined with a sharp market downturn triggered by Donald Trump's campaign remarks on October 10, has exposed issues such as liquidity shortages, collateral mismatches, and systemic delays. In response, several funds are reducing their altcoin exposure and pivoting towards DeFi and other areas with structural opportunities. Crypto hedge funds are actively adjusting their strategic allocations to navigate these evolving market conditions.