Crypto Portfolio Management Trends

Market neutral and quantitative/AI-driven strategies are gaining popularity in crypto, offering uncorrelated returns and risk management benefits

Tokenization of real-world assets (RWA) shows promise but faces regulatory and infrastructure challenges - real estate, bonds, and treasuries are prime early candidates

Fund of funds structures provide key benefits through:

• Access to high-performing but hard-to-access funds
• Risk diversification across strategies
• Professional due diligence and monitoring
• Lower minimum investment requirements

Major crypto investment trends include:

• Growing institutional interest in Southeast Asia, Africa, and Latin America
• Increased focus on AI/ML applications
• Rising demand for cybersecurity solutions
• Gaming and metaverse development, particularly in Asia

Critical risk management considerations:

• Counterparty risk and custody solutions
• Operational due diligence
• Cybersecurity measures
• Clear governance structures
• Liquidity monitoring

“Liquid venture” emerging as new investment category, offering:

• Earlier liquidity compared to traditional VC
• More flexible investment structures
• Faster iteration and feedback cycles
• Better suited for software/digital businesses

Family offices and institutional investors show continued interest but remain cautious, prioritizing:

• Market neutral strategies
• Strong operational controls
• Regulatory clarity
• Professional risk management

Human error and operational risks remain bigger concerns than technological risks in crypto investing