Trends Watch: Crypto Investing

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with Sadie Raney, Co-Founder at crypto robo advisor Makara and Co-Founder and CEO at crypto hedge fund Strix Leviathan.

What is your outlook for crypto?

My outlook on crypto is very positive in both the near-term and the long-term. More and more dinner table conversations are involving crypto and this growth in awareness for the asset class is very positive. Moreover, it is no longer the question “What is bitcoin?” People are digging deeper and asking questions like “What is DeFi?” and “How do I stake my crypto?”

Where do you see the greatest opportunities and why?

This asset class continues to grow and innovate in ways that are fascinating. The greatest opportunities I see are the things we don’t even know are coming. When we started nearly four years ago, DeFi was not even on the map and that use case has been flourishing. DeFi networks have the potential to provide financial services to many who are excluded from the same services in traditional markets. Overall, I cannot wait to see what comes next -- the pace of innovation is incredible, and I am certain even bigger and better things are ahead.

What are the greatest challenges you face and why?

As a whole, the industry’s biggest challenge is crypto scams. We are very diligent when selecting partners but counterparty risk in this asset class has to be taken very seriously and we expend a lot of time and energy in this area. The scams harm our broader industry in many ways, from general reputation damage to creating reluctance for regulators to engage with crypto firms. Eradicating bad actors from crypto is something we all want, but it is a challenge. The traditional markets haven’t solved this problem either.

What keeps you up at night?

I can honestly say “not crypto” if we’re talking about what worries me. Working in this industry is what gets me up in the morning. What ‘keeps me up at night’ are macro concerns like unemployment, global warming and gun violence. Not to mention more personal topics such as how my children are doing in school and why doesn’t laundry fold itself.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.