Crypto Credit Markets Will Rewrite Risk Management | David Grider
Episode publishedPodcast: Forward GuidanceForward Guidance
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But I think broadly, you're gonna see a bigger credit market start to emerge in crypto. Historically, when markets go down, people would just be in you're in Bitcoin, in ETH, and you're in all these altcoins, and everything's just a derivative of the beta of the overall market. You can use different parts of the investment universe to get different types of uncorrelated and diversified returns. You can get credit like downside, but crypto like upside. The biggest theme for for this year and potentially the next year or so is
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Well, thanks Felix. It's an honor to be here.
So I would just love to hear a bit about your background of how you ended up where you're at now. You're running a crypto liquid fund. I know you also have some venture in there as well, but yeah, you are a institutional allocator in the crypto space. How did you get there? What's been your journey?
Yeah. I think like many folks, I started in traditional finance, a small investment bank out of school, did some equity research, equity capital markets. And then I went to PwC, did some consulting evaluations for, you know, a bunch of weird, esoteric different securities, like debt equity across the cap stack, CLO, CDOs. And that's when I got into Bitcoin was like around 2015. And this is like $600, $5,600 for Bitcoin. And I was like, you know, I could figure out how to value Bitcoin. Can invest in it. Back in that time, started investing in ETH after the Dow hack, you know, invested with som
Amazing. So yeah, a lot of crosscurrents there between the TradFi world and the crypto world, which I think is a really nice jumping off point for understanding. Obviously, you know, audience here is a lot of macro first people, TradFi people that are starting to become more and more interested in crypto as it just integrates itself into the TradFi world. Obviously, have stablecoins, we have Bitcoin as its own entity, we have these digital asset treasury companies now, which are becoming a huge thing, which we obviously talked about in that panel. Before we get into the thick of it, I would lo
Yeah, you know, I actually don't think of us as a crypto fund. I think of us as a hedge fund that invests across the digital asset industry. You know, the way we focus the strategy, I think it's interesting. You could look at like a sector specific fund. There's biotech, but maybe energy is the best analogy in the traditional world. Have an energy focused fund. They invest in the spot commodity. That could be Bitcoin, E, etcetera. They can invest in derivatives around it, futures options, but they can also invest in the companies. It can be a small cap E and P, could be a large cap major, one
How do you manage the risk a bit and how do you measure success? Because this is something I've been thinking a lot about, which is just trying to understand risk adjusted return within the realm of something with such high volatility. Like, does it make sense to benchmark yourself against, I don't know, like the S and P or
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