Standing on the Shoulders of Giants — Active Management and Crypto

Rayne Steinberg
Mar 13 · 5 min read
Newton, Standing on the Shoulders of Giants

The Conversion of a Pacifist

Add to the inherent inefficiencies in the cryptocurrency markets, the complexity, and informational asymmetry and it’s not difficult to see why cryptocurrencies have what one manager refers to as a “knowledge premium.”

Call it “smart alpha” if you will, but even pedestrian strategies drawn from the capital markets and applied to the cryptocurrency markets — stuff that you’d be learning in a basic finance or trading course at any Ivy League school — can yield outsized returns.

And because there is informational asymmetry, passive investment strategies — cryptocurrency ETFs (where available) and cryptocurrency indexes are nowhere as effective as actively managed strategies.

Source

Passive Investment — A Victim of its Own Success

“Capital Markets are being transformed into a Political Utility.”


Arca

Arca is a financial services firm that blends the best aspects of traditional finance and blockchain technology. We create institutional-grade, regulated financial products designed to seamlessly transition today’s investors into tomorrow’s digitally-powered global economy.

Rayne Steinberg

Written by

Chief Executive Officer & Co-Founder at Arca | Co-Founder WisdomTree | Check out the latest blockchain insight & analysis at https://ar.ca/blog

Arca

Arca

Arca is a financial services firm that blends the best aspects of traditional finance and blockchain technology. We create institutional-grade, regulated financial products designed to seamlessly transition today’s investors into tomorrow’s digitally-powered global economy.