Key insights
- The post discusses challenges in allocating to crypto assets, highlighting the drawbacks of buy-and-hold strategies, underperforming crypto indexes, and low yields from DeFi platforms. It suggests a need for risk-weighted crypto indexes similar to those in traditional finance. While the discussion touches on investment strategies, it doesn't present a strong signal for immediate US equity market movements, but rather reflects broader concerns about crypto investment vehicles.
Do you have a set % allocation, rotate cyclically or something else?
I've been looking at the different ways you can allocate to crypto and I've seen these:
- Just buy and hold – this is brutal in bear years though. E.g. $BTC down 6% last year 2. A crypto index but these perform so poorly (e.g. $DPI) 3. Deploy idle yield strategies on Aave but this is less than Fed Funds (1.7%)...
Seems that there is enough vol, and long term returns to validate an allocation, but the vehicles are problematic. I think we need a new risk weighted index, as is typical in TradFi, instead of these standard market cap weighted indices but curious for your opinions on what the best package would be (e.g. is Saylor's $STRC actually the best thing).