Delta Neutral Crypto PM - AMA
PM for few years now at crypto shop with half a yard that specializes in delta neutral strategies and "yield"
Running mid nine figures in my book now after starting as a research analyst many years ago.
We're also getting more in to "tradfi" stuff because many junk assets are getting tokenized and distributed on chain.
Is crypto hedge fund a real hedge fund? Is crypto still the kiddie pool? Will I one day be able to retire from late night hacks and go work for a family office with sensible hours?
Happy to answer questions on WLB and other stuff considering the market is 24/7 and also the actual crypto discussion on the forum is very different from what we do.
Based on the most helpful WSO content, here's what you need to know:
Is a Crypto Hedge Fund a Real Hedge Fund?
Yes, crypto hedge funds are considered real hedge funds. They often operate with similar structures (e.g., Cayman Islands fund vehicles, 2 & 20 fee models) and strategies as traditional hedge funds. However, the asset class they focus on—cryptocurrencies and blockchain-based assets—sets them apart. Some funds, like MetaStable Capital, focus on long-term value investing in crypto assets, while others specialize in market-neutral strategies, liquidity provision, or arbitrage. Despite skepticism from traditional finance (TradFi), crypto hedge funds are increasingly recognized as legitimate players, especially as institutional interest grows.
Is Crypto Still the Kiddie Pool?
While crypto was once dismissed as a speculative "kiddie pool," the space has matured significantly. Institutional players, family offices, and even some hedge funds are cautiously entering the market. However, challenges like price manipulation, thin liquidity, and regulatory uncertainty still exist. Many traditional managers remain wary, viewing crypto as volatile and risky. That said, the tokenization of traditional assets and the integration of blockchain into TradFi are bridging the gap, making crypto more mainstream.
Can You Transition to a Family Office?
Transitioning to a family office is possible, especially if you can demonstrate transferable skills like risk management, portfolio construction, and navigating complex markets. Family offices are increasingly exploring alternative investments, including crypto, so your expertise could be valuable. However, the 24/7 nature of crypto markets and the unique challenges of the space might require you to adapt your pitch to align with the more traditional and conservative investment approaches of family offices.
Work-Life Balance (WLB) in Crypto Hedge Funds:
The 24/7 nature of crypto markets can make WLB challenging. Late-night hacks, constant monitoring, and the need to react to market-moving events at any time are common. However, some crypto hedge funds are adopting strategies to improve WLB, such as rotating shifts, leveraging automation, and focusing on less time-sensitive strategies like market-neutral or yield generation.
If you're looking to transition out of the 24/7 grind, focusing on skills that are applicable to broader asset management or family office roles—like understanding tokenized assets, risk management, and portfolio diversification—will be key.
Sources: Percentage of HFs Secretly Investing in Cryptos?, Q&A: Crypto Hedge Fund Trader, Industry Outlook: Crypto Hedge Funds, Hedging Can't Fix This - A Story of Being at a Collapsed Hedge Fund
Thanks for the post. Do you run your strategy across many different cex/dex or just a few? Do you have a team of analysts/developers or is it run by yourself? How has your performance been since October 2025?
The crypto books I've seen are much smaller and do things like basis trades, cross-ex arbitrage and market making, but the reduced retail volume this year has made some of this stuff much less profitable. As you said most of the volume this year has been in the RWA tokens.
Sorry missed this comment under the WSO monkey notifications.
We run on multiple CEX, but most of the perf comes from on chain. CEX used to hedge and more on "DEX" like Hyperliquid or similar these days. Started as the only analyst but now have a few analyst that work under me and help with the different portfolios. Still very much in the trenches as it were. Performance is just ok since Oct 10/10 events where we made a lot, but it has been bear market vibes for past year almost and performance is down as a result. It's my worst year since 2022 year with Luna and FTX and other craziness, but still will be finishing up almost 10% gross touch wood. It has been a less profitable year for sure just because people are depressed and a lot of the ponzi dynamics that gave high yield in the early days are played out. But still a lot to clip across the space, especially for smaller accounts. Smaller funds have decent advantage in this current market imo, lots of opportunities we find would die if we put any reasonable size from our book. Most funds doing crypto stick to CEX and these things like arb and funding you mention, which is why they all compete for same pie and then have bad performance when volume is down.
Many thanks for this post! Do you think it would be possible to move into such industry from a real estate private debt seats? How quant would it be and do you think it worth to actually make the move?
Truly appreciate for your insights, have been interested in this field which is less institutionlized.
There is a lot going on with doing "RWA" assets which is more or less people tokenizing various fund structures and putting them on chain. There are some real estate style ones like HOME and PRIME from Figure but also a lot of other ones. There are also a lot of real estate tokens that were scams lol. So there is room to do good structures and bring them on chain. Would look at some tokens that are already live in your beat and then reach out to the issuers. You probably don't need to be very quant, most of the tokenized fund offerings right now are basic stuff that wraps other bond or real estate or ETFs.
Many thanks! Do you think it worth to move into these niche areas rather than stayind in RE (REPE, REIB, RE credit fund)? Because to me it seems that people are just wrapping private assets (Private credit or real estates) on chain and it seems naturally less lucrative? But I almost know nothing...
There is a lot going on with doing "RWA" assets which is more or less people tokenizing various fund structures and putting them on chain. There are some real estate style ones like HOME and PRIME from Figure but also a lot of other ones. There are also a lot of real estate tokens that were scams lol. So there is room to do good structures and bring them on chain. Would look at some tokens that are already live in your beat and then reach out to the issuers. You probably don't need to be very quant, most of the tokenized fund offerings right now are basic stuff that wraps other bond or real estate or ETFs.
Voluptatum neque laboriosam ut aut. Tenetur corporis eos est perferendis. Quos aspernatur et aut enim.
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