The current ongoing correction is testing everyone, but we must not forget that the crypto market is still young and very volatile. As Roger Wurzel of GB Global Blockchain, which manages the Sustainable Crypto Selection DAA, points out, this industry will have an irrevocable impact on asset management and investment strategy. We might want to follow Jesse Livermore’s wisdom: “It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”
Was your transition from traditional asset management to crypto a smooth one? What were the biggest challenges? Are there any new rules that do not apply in the traditional world?
For many clients coming from traditional asset management, buying into a DAA is a new process, as they have to change fiat money into crypto and then use that crypto to buy into a DAA. The administrative work required to set up an account at a crypto exchange to change euro for BTC and than transfer the coins to the platform to buy into a DAA impedes many potential clients from investing. I believe the newly created possibility to buy into DAAs directly with EUR is a big step forward.
Understanding market dynamics is very important because you do not want to get distracted by short-term moves. How do you see the current correction? Do you think people are missing or not understanding the bigger picture?
Crypto markets are young, dynamic, volatile, and less efficient compared to mature capital markets.
Although not without risk, these inefficiencies provide a great opportunity for savvy professional investors to exploit.
Your DAA represents all parts of the blockchain environment, but your allocation strategy takes into account market capitalization and volume. How do you see the problem of price and volume manipulation on some exchanges?
Liquidity and market capitalization will always impact allocation strategies. As mentioned earlier, crypto markets are very volatile, and for a lot of smaller coins the market prices are driven by liquidity and the imbalance of information between the players. Therefore, it is essential to include these factors in the allocation process to protect investors.
Nevertheless, we anticipate that cryptocurrencies and tokens will have a significant and irrevocable impact on asset management and investment strategy moving forward.
Tokenization of different assets will expand the possibilities of what people can buy. What is your vision for a future portfolio?
Within the near future, the tokenization of assets will include all parts of the industry and of life. Not only currencies, but securities or rights will also be tokenized, and the whole economy will be impacted. From an investor perspective, tokenization gives you the ability to make assets liquid and tradable—important if we are talking about real estate assets, intellectual property, gold, or even my old sneakers.
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