Amitis Capital CIO Highlights Golden Age for Crypto Hedge Fund Investing Amidst Market Shifts

According to Chris Solarz, CIO of Amitis Capital, the crypto hedge fund sector is experiencing a "golden age" due to less competition compared to traditional finance (TradFi). In an interview with CoinDesk, Solarz noted that crypto markets, with approximately 1,650 hedge funds managing $88 billion in assets, are significantly less competitive than TradFi, which has over 10,000 funds managing $5 trillion. This allows managers to successfully readapt older strategies. Solarz estimates that 99.99% of the 40 million tokens in the crypto ecosystem will eventually become worthless, with only about 100 being worth consideration. He also suggests that the crypto market needs an injection of at least $300 billion to sustain current prices, given the scheduled token unlocks. Solarz allocates capital to venture funds, liquid directional funds, and liquid market neutral funds, finding the latter particularly profitable through strategies like arbitrage and perpetual contract funding rates.