Daniel Masters – 3 Years As A Regulated Bitcoin Investment Manager

Oct 13, 2017

Recently, Ryan Radloff, Principal of CoinShares sat down with Daniel Masters for a quick chat on his experience in founding and developing the world’s first fully-regulated Bitcoin hedge fund.

Full interview below, but we’ve pulled out some of the highlights below the video too in case you want to skip around.

[@11:43] Daniel Masters, with over 20 years of commodities trading, talks about applying this knowledge to such a young asset class.

“Arbitrages exist between exchanges, foreign currencies, and the reason is because these markets are still not integrated”

According to Danny – We are currently in the ‘second inning’ of bitcoin, based on a metric of how mature the market is. Without global institutions such as the Chicago mercantile exchange, bitcoin does not yet have one uniform price around the world, across the different exchanges. This provides incredible opportunities for the experienced trader.

Danny dives a bit deeper and takes us through his thoughts on forging a completely new path with a bitcoin hedge fund. This is a time when most things taken for granted in the legacy system such as a prime broker simply didn’t exist; as well as KYC/AML, and the difficulties of simply opening bank accounts for a company that dealt in bitcoin when all major institutions were still so highly suspicious. 

 

[@17:45] Danny discusses the future for the digital asset space:

“What’s been stunning is the diversity which has now developed across the whole digital asset space.”

Danny explains that internally, we have a concept of ‘Escape Velocity’. He ‘unpacks’ the theory of how cryptocurrency is getting to the stage where it may be able to completely ‘decouple’ from the legacy financial system and not only survive, but thrive..

 

 

[@18:40] And of course, the obvious closer, What does this mean going forward?

“Bitcoin has become the reserve currency of crypto”

Danny describes how Bitcoin has successfully disrupted to a certain extent the function of fiat money and the function of gold….And how, it has gained a status as the safest bet / reserve currency of crypto due to having the deepest, most secure and liquid markets.

Danny also notes that interestingly, while Bitcoin has become an equivalent to good, sound, digital money, Ethereum is disrupting a whole other sphere.

If Bitcoin is disrupting fiat money, Ethereum is now disrupting capital formation.”



You are going to have to check out the full video to get the real deep insights. Thanks for tuning in!

 

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