Ex-Goldman Sachs Christopher Matta Talks About His Work On The Crypto World
During a conversation at CNBC’s Fast Money, Christopher Matta, the co-founder of Crescent Crypto Asset management, gave the reasons why he decided to leave Goldman Sachs and run his own crypto-related business.
He has been discussing about different topics, including the U.S. Securities and Exchange Commission’s (SEC) decision on Ether and Bitcoin, which are not considered securities. He said that the market has been in operating under regulatory uncertainty and SEC’s decision is just one peace of a broader picture.
But before institutions start entering the space, it will be important for regulators to answer different questions regarding the market. Without that it will be difficult for these bigger players to place their money in the space.
Christopher Matta has also been talking about the 20 different cryptocurrencies in which his company is working with. They wanted to create something that was ‘future proof.’ They took the most important virtual currencies by market capitalization but they took a 90 day average to smooth the volatility.
For example, currencies that are able to jump in the top 20, but they are not able to sustain that strength, then they will not be taken into consideration. At the moment, the portfolio holding of Crescent is distributed as follows:
- 42.6% Bitcoin
- 20.6% Ethereum
- 19.5% Other
- 9.4% Ripple
- 5.4% Bitcoin Cash
- 2.5% Litecoin
At the same time, the company has liquidity thresholds and they need to be listed on multiple exchanges in the United States. Moreover, Crescent takes security in a very serious way. They work with currencies that are able to be stored in hardware or cold storage wallets.
He has also been talking about how they plan their investments and how they explain to their clients that the investment period is between 2 to 5 years. The fact is that at the end of the last year and the beginning of this one, everyone wanted to start a crypto hedge fund. After the all time highs that cryptos experienced, the market has been operating negatively, and some figures decided to avoid opening their crypto-related businesses.
About the risks and volatility of the market Mr. Christopher Matta said:
“It could be down 50% tomorrow or it could be up 300% next week. You have to hold this for a longer term, and people that understand that allocate appropriately in their overall portfolio to this asset class, and will ultimately do well.”
He also recommends individuals and investors to allocate a small part of their investments in cryptocurrencies. Even the most conservative investors are able to benefit from this growing asset.