What I Learned Managing a Crypto Fund for Five Years


18 Sep 2023 6:37 PM

Jeff Dorman, chief investment officer at Arca, says crypto funds still need to find a balance between adopting professional Wall Street practices and taking advantage of crypto’s unique opportunities....

  • Arca has achieved a five-year track record of managing outside capital in their liquid hedge fund, a significant milestone in the crypto industry.
  • The author, Jeff Dorman, shares five important takeaways from managing a crypto portfolio for the last five years.
  • Investing in crypto markets is challenging due to frequent booms and busts, changing risk models, and inaccurate depiction of expected returns.
  • Contrary to popular belief, 24/7 trading coverage is not necessary in crypto markets, as knee-jerk reactions are often wrong and the true market reaction takes time to play out.
  • The 24/7 work-day in crypto markets poses difficulties as there are no natural resets like in traditional markets, leading to potential mistakes in decision-making.

The sentiment of the article is neutral. It provides insights and observations about managing a crypto portfolio without expressing a positive or negative bias.

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