CEO of Crescent Crypto Takes Stance on Crypto
The Security and Exchange’s Commission rejection of Winklevoss Twins second Bitcoin ETF application. The rejection joints Gemini’s application, which is already on an ever-growing list. The rejection has also led to a decline in Bitcoin’s value and it is currently trading at $8,130. In general though, if one were to look at the value over the past month, it has grown by 30 percent.
Ali Hassan, the cofounder and CEO of Crescent Crypto Asset Management, has taken a passive approach toward bitcoin and bitcoin-only ETFs. Hassan considers bitcoin to be a “borderless asset class,” which means that it is a decentralized digital asset.
Bitcoin’s previous sell-off and its slow uptick back toward $8,000 has meant certain changes for Hassan’s asset management firm. In a Bloomberg interview, Hassan stated that it is true that bitcoin is a “significantly volatile asset class.” In response, the firm has reduced the volatility of the asset by “holding twenty coins with slightly different levels of correlation and using a 90-day trailing average market cap.” This strategy ultimately “mutes the overall volatility of the portfolio relative to just bitcoin alone.”
The firm’s strategy has led to satisfied investors. As Hassan stated, the firm has not had any redemption and it is seeing “tremendous” demand internationally and U.S. Further, U.S. investors enjoy passive investments.
The firm is also considering launching a multi-coin ETF. When questioned about its intent in light of the SEC’s rejection of Winklevoss’s ETF, Hassan stated “The SEC wants to see investor protection specific for retail investors.” The community is saying that passive vehicles will reduce the concerns and may enhance participation in the market. Most of the efforts are single-coin products – the ecosystem may go from just access to seeing it as a completely different asset class with multi-coin products.
Hassan added that it holds its twenty coins in cold storage and it “means the proper storage of the coin’s offline devices.” This reduces risks of client’s assets. On the last point, Hassan believes that Bitcoin’s value could go “to the moon.”