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  • Writer's pictureBlockstone Capital

Optimising Digital Asset Investments while Mitigating Associated Risks

Updated: Mar 13

Family Offices increasingly acknowledge the significance of Bitcoin and cryptocurrencies in diversifying and enhancing their traditional investment portfolios. With a strategic shift towards active management and a multi-manager approach, these investors are poised to maximise their returns in the cryptocurrency markets.

 

  • Active Management: The buy-and-hold Bitcoin strategy is often the first step to crypto investment. However, holding Bitcoin lacks yield, attracts costs, and exposes the portfolio to significant volatility. Many investors, therefore, take the next step and employ active management strategies – leveraging market inefficiencies through trading strategies executed by specialist fund managers.

  • Multi-Manager Approach: Diversification is crucial in mitigating the significant volatility of cryptocurrencies. By adopting a multi-manager strategy, qualified investors can benefit from the specialised expertise of managers across a wide spectre of strategies – mean reversion, quant directional, delta neutral, long short, etc. They not only reduce volatility but can also deliver consistent, uncorrelated returns, enhancing the overall portfolio growth.

 

Blockstone Capital: A Solution Aligned with Growth & Wealth Preservation Principles

 

The Blockstone Capital platform is designed to help you navigate the unique challenges of the digital asset market. It offers access to institutional-grade crypto hedge funds and an innovative ‘All-weather’ strategy, focusing on:

  • Strategic Investment: Tailored for dynamic investment approaches prioritising wealth preservation and aligning with long-term growth objectives.

  • Risk management: We provide a secure, streamlined entry into digital asset investing, emphasising institutional-grade risk management.

  • Payment in kind: Utilising Bitcoin as collateral for lending brings little returns and potential counterparty risk and could have tax implications. Instead, our funds accept payment in kind, and qualified investors can generate yields in Bitcoin.

 

Conclusion:

 

With a focus on active management and a diversified multi-manager strategy, Blockstone Capital offers a robust framework for preserving wealth and facilitating significant growth. This makes it an indispensable solution for qualified investors looking to leverage the burgeoning potential of digital assets.


By Carl Szantyr, Managing Partner, Blockstone Capital

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