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GIPS Compliance: What It Means for Crypto Investment Firms
When a crypto investment firm claims GIPS compliance, a global standard for presenting investment performance results. Also known as Global Investment Performance Standards, it’s the gold standard for transparency in how firms report returns — whether they manage stocks, real estate, or digital assets. In crypto, where hype often replaces facts, GIPS compliance cuts through the noise. It doesn’t guarantee profits, but it does mean the firm follows strict rules on how they calculate, present, and verify their performance numbers.
Think of it like a food label: if a fund says it returned 200% last year, GIPS tells you how they got that number. Did they include all accounts? Did they adjust for fees? Did they cherry-pick the best-performing months? Without GIPS, anyone can cook the books. With it, you can compare one crypto fund to another on equal footing. That’s why institutional investors — pension funds, endowments, family offices — only work with GIPS-compliant managers. And now, as crypto assets grow in size and sophistication, even retail investors should care. A fund that follows GIPS is signaling it takes ethics seriously. It’s not just about bragging rights; it’s about accountability.
GIPS compliance requires detailed record-keeping, independent verification, and full disclosure of risks. It’s not easy. Most crypto hedge funds don’t bother — it’s expensive and time-consuming. But the ones that do? They’re the ones you want to watch. They’re the ones building trust in a space full of exit scams and fake APYs. This collection of articles dives into real cases where performance reporting mattered — from airdrop-focused funds that skewed returns to institutional players who adopted GIPS to attract real capital. You’ll find reviews of crypto managers who claim to be compliant, breakdowns of what the standards actually require, and warnings about firms that misuse the term to look legit. If you’re putting money into crypto investment products, you need to know what GIPS compliance really means — and whether the fund you’re considering actually has it.