The post 99% of Crypto Tokens Are Going to Zero: Funds Manager appeared on BitcoinEthereumNews.com.

There’s never been a better time to allocate money to crypto hedge funds. That’s according to Chris Solarz, the chief investment officer of digital assets at Amitis Capital, a firm which runs a crypto-focused fund of funds — meaning a fund that specializes in allocating capital to various money managers. “This is the golden age for crypto hedge fund investing,” said Solarz, who used to be responsible for almost $8 billion in allocations at investor advisory firm Cliffwater, in an interview with CoinDesk. “It’s an alignment of the stars. This beta, this secular tailwind… blockchain as a whole has such potential. At the same time, the money manager universe is so scarce that I feel like I’m shooting fish in a barrel being able to pick the winners.” Crypto markets are still so new that money managers are able to run the same trading strategies that they used to 35 years ago in TradFi, when hedge funds were only just emerging, Solarz said. Only 127 hedge funds existed back in 1990, managing roughly $39 billion; by 2024, those numbers had skyrocketed to over 10,000 funds managing $5 trillion in assets. In other words, the sector got way more competitive — and it became much harder to outperform the market. Solarz’s thesis is that the crypto sector (which counts roughly 1,650 hedge funds managing $88 billion in assets) is currently 10 times less competitive than traditional markets, to the point that money managers are able to dust off and readapt 20-year-old strategies that stopped working in TradFi over a decade ago due to commoditization. “I meet 20 managers [in crypto]… 19 out of 20 don’t deserve to be running money,” Solarz said. “A lot of them are young and have never managed money before. They’ll say ‘We’re investing in bitcoin, ether…

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Filed under: News - @ March 26, 2025 10:21 pm