Asymmetric Finance is leading the charge in modernizing crypto fund management. Roundtable anchor Rob Nelson and Joe McCann, CEO of Asymmetric Finance, delved into this approach, highlighting the transformation and adoption of new technologies in the finance world.

Nelson kicked off the conversation by highlighting the unique aspects of Asymmetric Finance. "You run a digital asset management company," he said, emphasizing the firm's integration of hedge funds and other digital asset services.

Asymmetric Finance's McCann described his company's approach. "We are kind of a modern technology-based crypto fund," McCann explained. "We have a long-short discretionary hedge fund that trades liquid tokens like bitcoin and Solana, as well as two early-stage venture capital funds." He highlighted his 24 years of experience straddling Wall Street and tech, which he believes is a perfect marriage for the crypto space.

Nelson further explored the similarities and differences between investing in digital funds and traditional hedge funds. He noted that the mechanisms often work similarly but acknowledged the novelty of the area for many investors. "It's a new area both in the finance world and for people to invest in," Nelson said. He pointed out the convenience of spot bitcoin exchange-traded funds (ETFs), likening them to buying stocks. McCann agreed, noting that the user experience in crypto is improving over time.

McCann shared an anecdote from his car ride to the hotel, where the driver inquired about the easiest way to buy bitcoin. "I said, now there's an ETF," McCann recalled, illustrating the growing accessibility of crypto investments. He compared the current state of crypto to the early days of computers, emphasizing that user experience improves with time.

Discussing the institutional side, McCann said that the process was quite similar to traditional hedge funds. "If you're a limited partner in a traditional financial hedge fund, you pay certain fees and go through certain subscription docs," he said. The key differences, according to McCann, lie in how managers handle counterparty risk, manage exchange risk, and use leverage. He stressed the importance of evaluating these factors when investing in crypto hedge funds and venture capital funds.

As the conversation continued, McCann highlighted the unique challenges and opportunities in crypto fund management. He underscored the importance of having a solid risk management policy and being cautious with leverage. "In crypto, you really don't need obscene amounts of leverage," McCann advised, emphasizing the distinct nature of digital assets.