Digital Asset Solutions AG Teams Up with GenTwo for Enhanced Crypto Portfolio Diversity

Founded in 2022, Digital Asset Solutions aims to bridge the gap between traditional finance and the emerging world of blockchain and cryptocurrencies. Co-founder and Head of Investment Strategy Stefan Hoechle brings over three decades of experience in trading and managing international financial products to the company.


"Digital assets represent a new and exciting asset class with an extraordinary risk-return profile," says Hoechle. "However, the infrastructure for easy access has lagged behind the rapid growth of the crypto space, creating a significant barrier to entry for traditional investors."


Diversified Exposure to the Crypto Market 


Digital Assets Solutions' flagship product, DAS - Diversified Crypto Exposure, addresses this challenge by providing investors with a rule-based portfolio that offers broad exposure to the digital asset market. 


"Diversification is crucial in the crypto market, where volatility is high, and market conditions can change rapidly," explains Hoechle. "Our product's strategy is designed to adapt to these changes and provide investors with a more stable and resilient investment option."


The portfolio primarily consists of Bitcoin and Ether, with additional exposure to key crypto sectors such as Smart Contract Platforms, Centralized Exchanges, Currencies, DeFi, Web3 Infrastructure, and GameFi. Our rule-based diversification strategy reflects the market's valuation of the crypto market, ensuring that clients receive a comprehensive exposure to the whole investment universe. The portfolio mirrors the most significant infrastructure and application layers of digital assets by market capitalization, similar to an S&P 500 index certificate.


"Our product gives investors up-to-date exposure to over 90% of the crypto market through a single investment," explains Hoechle. "The strategy is supplemented by a discretionary token allocation of up to 5% of the total assets under management and a quarterly rebalancing to account for significant market changes and emerging trends."


Overcoming Challenges 


Developing a product that combines traditional finance instruments with digital assets presented several challenges for Digital Asset Solutions. GenTwo's platform and services have been instrumental in overcoming these hurdles and streamlining the product development process.


"GenTwo provides the basic infrastructure for building this instrument, bringing different tokens into the portfolio, executing buy and sell orders, and offering storage solution possibilities," says Hoechle. "Their support has been invaluable in helping us bring our vision to life."


Security and Custody 


Digital Assets Solutions partners with leading third parties for custody and trading, ensuring that the highest industry standards are maintained. The company also employs a decentralized custody solution, with assets stored directly on the blockchain for enhanced security.


"Custody and trading are handled through top-tier partners like Kraken and Fireblocks," notes Hoechle. "This allows us to provide our clients with the utmost security and peace of mind."


Looking to the Future


With the successful launch of DAS - Diversified Crypto Exposure, Digital Asset Solutions is focused on optimizing processes, onboarding more counterparties, and expanding its product offerings. The company plans to leverage GenTwo's services to develop additional investment strategies and bring them to market. The company is also planning to expand internationally and has already taken initial steps to establish a presence in the Middle East. 


"We're excited about the future and the potential for further collaboration with GenTwo," says Hoechle. "Together, we're making the crypto market accessible to traditional investors and shaping the future of wealth management."