After hundreds of client Zoom consultations over the last 6 months, the request for a fundamentally-driven macro-risk model for cryptocurrency (specifically Bitcoin), similar to the ones we provide for the US economy and SP500, was one of the many topics topics among just under 49% of the calls. The request was highest among high net-worth private investors, family offices and small funds, but we expect company treasurers and larger institutions to become more formally involved with Bitcoin as a possible hedge against dollar depreciation and inflation.
Fortunately we have over five years active experience with Bitcoin and Ethereum, having been involved when BTC was still $900 in late 2016. What was a small 1% exposure built up over late 2016 to early 2017, has ballooned to over 10% during this time, meaning we have a very active interest in monitoring macro-cycles and risk models associated with the cryptocurrency. Whilst we were surprised at how many of our clients have, or are planning exposure to Bitcoin (either in their private or formal capacity) we are delighted to share with them the fruits of our five year journey.
The Crypto Advisory has been designed for large investors, family offices, company treasurers and fund managers who are exposed to Bitcoin (either through direct ownership or Trusts such as Grayscale) and seek institutional-grade macro-level, fundamentally-driven risk and valuation models. The charts and models displayed here are what we have developed over the last 5 years for our own crypto investments and currently deem to be the most important items to track and measure macro risk/opportunity for cryptocurrency.
The models are a mixture of supply/demand metrics, valuation, regression and pricing models, as well as cyclical factors. All data used are a mix of on-chain analytics (data taken directly from the blockchains themselves), futures markets and exchange pricing data.
The Crypto Advisory is provided as standard with our most basic subscription and thus also includes unlimited in-person consultancy (via Zoom) with our crypto analysts to allow any private investors, family offices or institutional clients to jump start their crypto operations or to sanity check their existing ones. Expertise can be provided regarding what wallets and exchanges to use, which crypto-assets to focus on as well as what additional tools may prove useful.