The Assetizer · 20 September 2024
Exploring Blockchain and Crypto with Industry Leaders
GenTwo recently hosted an insightful panel discussion on blockchain and cryptocurrency investments. Tom Lyons, GenTwo's Head of Demand Creation, welcomed attendees to our new Zurich office for an engaging event with topic experts.
The event featured two industry veterans: Olaf Hannemann, Co-founder of CV VC and David Friche, Partner at Crossbow Partners. Their collaboration with GenTwo on several investment products set the stage for a comprehensive exploration of both blockchain technology and cryptocurrency as distinct investment opportunities.
Hannemann shed light on CV VC's dual focus: investing in early-stage blockchain startups and fostering startup ecosystems. He proudly noted their "Technologies for Tomorrow" fund, which won the best crypto product award for 2024, despite not holding any crypto assets. Instead, it invests in 26 blockchain startups, emphasizing the potential of blockchain beyond cryptocurrencies.
Friche detailed Crossbow's approach to crypto hedge funds, highlighting two Actively Managed Certificates (AMCs) issued with GenTwo. These products, one multi-strategy and one market-neutral, have democratized access to specialized managers by lowering the minimum investment to $10,000. Friche stressed the importance of active management in the volatile crypto market.
The discussion then pivoted to blockchain adoption and infrastructure development. Stablecoins emerged as a standout use case, with daily settlement volumes surpassing PayPal. Tokenization was identified as a promising area across various sectors, with many banks and financial institutions quietly developing blockchain projects internally.
On the regulatory front, Swiss banks were noted as being more open to crypto than their European counterparts. However, larger universal banks remain cautious due to unclear US regulations. The speakers highlighted the challenges of implementing robust Know Your Customer (KYC) and Know Your Asset (KYA) processes in the crypto space.
Looking to the future, the panel predicted widespread tokenization, with gaming and digital identity pinpointed as potential breakthrough areas. They also discussed the state of venture capital funding in Switzerland, noting a prevailing conservatism and risk aversion in the market.
The event concluded with insights on custody solutions for crypto assets, with Fireblocks and Signum emerging as popular options among hedge funds.
This engaging discussion underscored the rapidly evolving landscape of blockchain and crypto investments, highlighting both the challenges and immense opportunities that lie ahead.