Welcome to the latest episode of The Crypto Explorer, a podcast by Sygnum which takes you into the exciting world of crypto assets and future finance through conversations with leading figures in blockchain and finance.
In this episode, host Aliya Das Gupta and guests Charles-Henry Monchau, Chief Investment Officer at Syz Group, as well as Fabian Dori, Head of Asset Management at Sygnum, explain about reframing crypto asset management post 2022
Aliya Das Gupta: How did you begin to think crypto should be a part of an asset management portfolio?
Charles-Henry Monchau: At some point in my career, I was looking at the tech sector. In this sector, if you want to be a good research analyst, you have to be a good investor in tech. You should not focus on the legacy names; you need to find the disrupter.
I came across Bitcoin in 2014/15. There was a small Bitcoin ATM in Geneva. I bought my first Bitcoin for a very small amount, then I started to see a rise in value. I started to read books about what Bitcoin is. As things were progressing, I always thought about this white paper as being like Nostradamus because they were talking about decentralisation—basically fiat currencies were going through monetary debasement with no quality easing.
My first interest was in Bitcoin, but then I started to look at Ethereum and the new protocols. And this is how I look at cryptocurrencies, as an asset class with basically two camps: one which is Bitcoin as digital gold, and Ethereum and other protocols as super liquid venture capital investments. The digital gold is a diversifier; for the rest, either microcap tech stocks or liquid VCs could be the way to find a place for them in a multi-asset portfolio.
Fabian Dori: First of all, I think we need to keep in mind that crypto assets are still a very young asset class, still very much volatile and linked to many risks. Investors in that asset class need to have a certain risk appetite, a certain risk tolerance. But if that is given, I think crypto assets make very good sense.
There are three lines of reasoning for this. First, I truly believe in the megatrend of the blockchain DLT technology policy – maybe similar to the adoption of what we have seen in
personal computers, internet and technological advancements. Second, it provides alternatives when it comes to store of value, medium of exchange and all these use cases. Third is the business innovation which is enabled by it, and that can be seen through new forms of applications and platforms.
I think there are different dimensions which give value and an increased amount of value to that technology which is emerging.
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