Bitwise Cautions That Institutions Are Following an Incorrect Crypto Strategy

Institutional Mindset on Crypto: Jeff Park from Bitwise Asset Management argues that institutions should adopt liquid strategies in crypto, leveraging market volatility instead of locking away capital.

Critique of Traditional Models: Park contrasts traditional investment frameworks, like those used by Yale's David Swensen, with crypto's need for daily responsiveness to price changes, highlighting that liquidity drives returns in this space.

Venture Capital Misallocation: Many institutions are still investing heavily in crypto venture funds, which Park believes is misguided given the vast trading volumes in public crypto markets compared to venture investments.

Embracing Volatility: Park views volatility as a strength in crypto, creating scalable opportunities, and suggests that future institutional investors will succeed by embracing liquidity rather than adhering to outdated investment models.