April 30 2021

Simple Crypto Asset Management

Well, you’ve heard about crypto, have you? But you don’t know whether it’s worth your while looking deeper into it. For some, it has been easier to directionally trade BTC or ETH through an ETF, or a trust. For some others more daring, you’ve created your wallet and started dabbling into crypto.

Short of being a full-time trader, these things take time and require constant updates on the new tricks of the trade. Well, there might be some easier solution for you: an automated crypto manager. The automated part is a given, considering that we’re dealing with auto-guided software protocols, now what you may want to delegate is the discretionary management around your crypto portfolio. What assets to choose, how to manage keys, when to rebalance, what type of risk you assume for any type of given return, and how to keep track of all transactions? These things can get messy.

Protocols such as Balancer allows to set up digital asset pools, the same way you would set up a fund. To ensure that the pool answers your set risk-return objective, as well as all the requirements around safe custody, trading, reporting, you would add the guidance of a trusted advisor. The advisor sets up the pool on Balancer, you would send money to the pool against tokens that reflect any accrued pool value through time. The advisor manages the pool by allocating assets to DeFi protocols for returns currently between 3.4% (Compound USDC, crypto risk-free) to 60% (yearn.finance vault) depending on risk appetite.

Thus, you not only unlock higher return on cash-like digital asset, but also crucially add risk control to your wallet. This is discretionary money management re-invented, only made simpler and frictionless through digital processes. Welcome to the future of wealth.

360 Advisory – Markets