Navigating the Booms and Busts: How Crypto Fund Managers Adapt to Volatility

Managing a crypto fund is challenging due to frequent booms and busts that distort risk models. Assumptions must be constantly tweaked.

Interpreting information is more important than reacting quickly. Knee-jerk reactions to news are often wrong.

Thorough documentation is crucial as major events can unfold rapidly. Without proper handoffs, mistakes can occur.

A balance between short and long exposure is needed. Passive crypto indexes cannot keep pace with innovation and volatility.

Building a good team passionate about the industry is fundamental but difficult as roles are still being defined. Employees must be willing to wear many hats.