Christopher Matta, the Co-founder of Crescent Crypto Asset Management, and former Vice President at Goldman Sachs Investment Management Division, claimed in his debut on CNBC’s Fast Money that it is safer to hold a variety of altcoins rather than Bitcoin since this diversity would offer better risk-adjusted returns.
The Crypto 20 Private Index Fund is an index fund that invests in 20 of the most liquid cryptocurrencies which command the greatest market cap.
When asked about how the variety of altcoins should be chosen, and whether it is market cap based and will change over time, Matta answers that the coins which suddenly ‘explode in value’ must really retain their position to prove themselves as true investments.
The Cresent Crypto Asset Management’s major portfolio holdings are Bitcoin, Ethereum, Ripple, and Bitcoin Cash. Liquidity is another factor to consider when choosing a coin to invest in. It must be available for trade on multiple cryptocurrency exchange platforms. Also, Cresent really looks at the issue of custody – they will not hold any currency that cannot be held in cold storage. This is for security measures, as exchanges being hacked is bad news for everyone involved.
Matta will, ‘absolutely’, put his mother’s money into this crypto asset class. He believes the risk-adjusted return is very good compared to other asset classes, despite the market being quite volatile at the moment. “You might get 10x, over the next five years”, he asserts.
Brian Kunzig states on Twitter:
“Scary that a guy from goldman thinks a person can diversify in crypto to minimize risk lol. Buy shitcoins and risk goes up. Buy bitcoin and you’re at minimum risk. Not too hard.”
Baran, another Twitterati said:
“He does not know what hes talking about. Not at all.”
To which girlcrypt replies:
“Agreed – a simple overlay of the bitcoin chart on altcoin charts will clearly show that holding 20 alts doesn’t make the portfolio diversified. All coins move based on Bitcoins movements except for the really low cap coins…”
The post Holding 20 altcoins safer than holding Bitcoin [BTC], says Former Goldman business analyst appeared first on AMBCrypto.