AI Quant Funds Outperform Retail Traders in Stocks and Crypto Markets
Goldman Sachs has issued warnings about AI-driven job displacement across finance and other sectors, coinciding with Ningbo’s High-Flyer quant hedge fund reporting a staggering 52.55% average return in 2025. Retail traders continue to struggle, with 84% losing money in their first year of crypto trading.
Nearly one-fifth of global investors now leverage AI tools for portfolio management, signaling a paradigm shift in market participation. The rise of autonomous trading agents—operating 24/7 without traditional banking infrastructure—creates natural demand for crypto and stablecoins as the native settlement layer for algorithmic finance.
Market analysts suggest mastering AI agent selection may become the defining financial skill of this decade, as human traders compete against machine learning models executing trades at internet speed. This transition mirrors broader institutional adoption trends observed across BTC, ETH, and other major digital assets.