December was tough for the broader crypto market, but a small group of institutional investors closed the month in the green.

Key Insights from On-Chain Data (Nansen):

While prices were under pressure, several major crypto funds booked millions in realized gains.

Top performers then shifted toward aggressive selling as the month progressed.

Top Institutional Winners

Wintermute: ~$3.17M in realized profits — the most profitable fund in December.

Dragonfly Capital: Profits distributed across multiple wallets ($1.9M, $1.0M, $990K).

Other notable funds: IOSG, Longling Capital, Arington, Pantera, Polichain.

Takeaway: Profits were concentrated among highly active repeat institutional traders, not one-off wallets.

"Consistent execution and active trading management differentiate institutional winners from the broader market slump."

December Strategy

Exploited short-term opportunities and liquidity-driven trades.

Diversified portfolios across multiple wallets (Dragonfly) or leveraged deep liquidity provision (Wintermute).

Maintained resilience when retail traders struggled amid rising volatility and end-of-year market weakness.

Active Profit-Taking on Chain

The same profitable funds are now selling rather than accumulating.

Example: QCP Capital deposited 199.99 ETH (~$595K) to Binance on Dec 26 — a move typically tied to preparing assets for sale.

Wintermute reduced exposure after previously building positions.

Dragonfly Capital partially exited Mantle (MNT) — deposited ~6M MNT (~$6.95M) to Bybit, still holding 9.15M MNT (~$10.76M).

Dual Strategy:

Capture gains during volatility

Reduce risk quickly as conditions change

End-of-year selling may also reflect portfolio rebalancing, capital preservation, or preparation for 2026 allocations.

📌 Conclusion:
While continued institutional selling may pressure short-term prices, it signals discipline and strategic risk management rather than negative conviction.

This data highlights how smart, active institutional funds can profit even in challenging market conditions, contrasting sharply with struggling retail traders.