Southpoint Qualified Fund and Southpoint Qualified Offshore Fund returned 2.5% net for the first quarter, compared to the S&P 500's 6.2% return and the Russell 2000's 12.7% gain. During the first quarter, Southpoint's funds averaged 133% long and 70% short. Q1 2021 hedge fund letters, conferences and more The fund's long positions added 13% gross Read More
BTC, ETH And Crypto Asset Class Hits $2 Trillion Drawing In More Investment Professionals
The low volatility story continues, as we see BTC has been range bound between $55k and $60k, unable to move sharply above or below. ETH has also been within a 10% range, although at lower levels, between $1,900 and $2,100. We could see upwards drift before big moves in either market if players position themselves and try to front run imminent ETF flow from new retail investors, a mix of old money and unsophisticated brokerage. Everyone with the relevant investment qualifications is gauging client interest, from millennials to boomers, and seeing how to earn a fee off dipping their clients’ toes in this new asset class. Let’s assume they are having conservative conversations and will move at least 1% of investable client assets into BTC and ETH, split 50-50.
Many alt coins are also pushing new all-time highs and the value of this entire new asset class stands at $2 trillion, and BTC “dominance” has fallen to just 56%. Now that crypto-assets are becoming more mainstream, large cap coins and tokens are big magnets for investors with direct market access. Investment trusts and funds are announcing additions to their product line up or inclusion in their offerings. Now that the investable base is wider, the sophisticated investor will likely distribute new risk across several blockchain protocols and create diversified or fragmented crypto portfolios similar to equities in the traditional world. BTC and ETH will remain core positions, but now there are attractive satellites to add around them. Some investors are injecting cash for the new investments, and some will obviously take profit on longer held positions and rotate, which may be why BTC and ETH prices keep channelling and stay suppressed as sellers keep selling around the highs and buyers accumulating at dips.
About Justin Chuh, Senior Trader at Wave Financial
Prior to joining Wave Financial Justin Chuh was at proprietary trading technology business HC Tech where he was a FX trader for 7 years. Justin is a CFA Charterholder, member of CFA Society Los Angeles and graduated from Arizona with a BS in Business Economics and Management. Justin is responsible for trading Bitcoin and other digital assets that make up Wave’s assets under management, ensuring that their trading strategies cover fund inflows and redemptions.
About Wave Financial LLC
Wave Financial LLC (Wave) is a Los Angeles and London based investment management company that provides institutional and private wealth digital asset solutions. Led by a team of highly experienced financial services professionals, Wave provides investable funds via their diverse investment strategies applied to digital assets and tokenized real assets. Wave also offers managed accounts for HNWIs and family offices seeking tailored digital asset exposure, bespoke treasury management services, and early-stage venture capital and strategic consultation to the digital asset ecosystem.
Wave is regulated as a California Registered Investment Advisor (CRD#: 305726).