Keep pulling the thread on John D'Agostino.
The emergence of on-chain perpetual futures for non-crypto assets like oil and gold on venues such as Hyperliquid is creating new arbitrage opportunities against traditional exchanges like the CME.
Thomas Bailey predicts that AI agents will prefer to use cryptocurrency for transactions due to its 24/7 availability, global reach, near-instant settlement, and low transaction fees of 1-4 basis points.
Thomas Bailey predicts a future need for identity, staking, or collateral systems for AI bots to prevent fraud and build reputation, potentially using slashing mechanisms or on-chain arbitration.
Fortius is a crypto-focused asset management business that started five years ago in partnership with UK-based asset manager Schroders, which took a minority stake in the firm.
Fortius, a team of roughly 30 people, has been managing external capital for three years across three investment solutions: directional long-only crypto, market-neutral arbitrage strategies, and market-neutral returns on top of Bitcoin.
Thomas Bailey categorizes crypto assets into two groups: Bitcoin as a store of value without cash flows, and smart contracting platforms like Ethereum and Solana, which are designed to have cash flows from applications built on top of them.
Nick believes that the investment thesis for other crypto assets has always been as an option on the wider adoption of blockchain technology, a trend he sees as accelerating.
A new element in the crypto investment thesis that was not present five years ago is the potential for AI bots to drive the use of crypto for automated transactions.
Road Capital's fund has a 3-year hard lock followed by a 3-year gate, a structure designed to create a duration arbitrage advantage over market participants with shorter time horizons.
Nick states that the primary attraction for hedge funds in crypto markets is the opportunity for alpha generation from a high volatility, fragmented, inefficient, and retail-driven environment.
Cube Research is an example of a large traditional finance quant pod shop that has successfully become significantly involved in cryptocurrency trading.
A significant barrier for traditional hedge funds entering crypto is their offering document, which restricts investments and typically requires them to launch a new fund or side pocket to trade crypto beyond a de minimis exemption of up to 5%.