E97: How Institutional Investors Access Crypto

Key Points

• Emerging managers often offer better alignment and higher potential returns because they focus solely on making their initial funds successful without the distraction of multiple products or fee streams.
• Time diversification across multiple vintage years is crucial for managing risk and achieving steady returns in the volatile crypto market.
• The most attractive return profiles in crypto venture come from pre-seed investments in small funds, which provide higher look-through ownership and require managers to have intentional, independent thinking and early engagement with promising projects.