Outerlands Capital

Thank you Mike Cagney of Figure Markets for sitting down and chatting with our CIO, Colin Jones, in the latest Proto-Calls episode! We discuss Cagney's beginnings in traditional finance, his deep-dive into blockchain in 2017, and how decades of experience ultimately led him to co-found Figure, building the "exchange of everything." Some episode highlights: ? Stablecoin legislation and predictions (min 20:37) ? Tokenizing private funds–and how we think it will actually play out (min 28:08) ? The evolution of centralized vs decentralized entities in blockchain (min 34:48) ? Figure's product roadmap (min 39:19) Youtube: https://lnkd.in/eW35u6Yr Spotify: https://lnkd.in/e6QhWKBY

Crypto markets have experienced sharp declines in the last few weeks, catalyzed by macro uncertainty and some re-rating of valuations from the post-US-election exuberance. In the heady days of gains post-election, many were wondering if they had missed the trade. Now, only four months after the election, only 30% of tokens in the Top 100 at the time of the election are above their pre-election levels. The median token in the group is down 22%. While some level of re-rating from exuberant post-election levels was inevitable, seeing most of the market down materially vs pre-election levels seems overdone. It’s hard to argue that the fundamental case for crypto now is worse than pre-election. In fact, it’s arguably much better, given the walk-back of many regulatory actions against crypto firms and new government focus on fostering crypto markets in the US. As we said in a previous post - look for opportunities when markets draw back. Crypto allocations should be made with a long time horizon in mind. Macro headwinds will come and go, but investors that believe in the disruptive potential of blockchain and digital asset technology should look for entry points when others are fearful. *The information herein is for general information purposes only and is not investment advice. Past performance is no guarantee of future results. Investing involves risk including the loss of principal.?

Wrote again for CoinDesk... this time about the state of data in crypto from an investment perspective. I think it's an underappreciated element that the market would do well to focus more on if we want the 'real' money to enter the game. "While digital asset markets are awash in data, they lack structure and standardization. This hasn’t mattered much in a market driven by retail speculation, but standards need to evolve to attract institutional capital into the space." Read and subscribe here: https://lnkd.in/gVdSuDNX CoinDesk Outerlands Capital Artemis

“While digital asset markets are awash in data, they lack structure and standardization. This hasn’t mattered much in a market driven by retail speculation, but standards need to evolve to attract institutional capital into the space." Our Head of Research, Felician Stratmann, writes more for CoinDesk’s Crypto Long and Short: https://lnkd.in/e-5mji-j

"Finding Alpha in Crypto Markets" ?? You need broad AND deep data on markets AND fundamentals ?? Design strategies that capture how the market WILL be in the future - not just how it HAS been ?? Retail has driven everything in crypto markets - chasing narratives, twitter threads that count as "research", bought and paid for "KOLs" driving "mind share"... Serious institutions (that is, pensions, endowments, and the like... not just crypto-focused funds) are eyeing this market. They'll be applying frameworks from decades of investment experience in traditional assets. Expect things to behave a bit differently then.

The latest bout of volatility in digital asset markets has commentators questioning if the bull market is over. Although recent moves have been violent, it is not unlike digital assets to experience sharp, painful drawdowns during bull markets. Even looking at Bitcoin, one of the less volatile digital assets, there have been 8 periods where its price has fallen more than 20% in a rolling 90 day period, since the latest up-trend began in November of 2022. The latest drawdown marks the 9th. Meanwhile, Bitcoin is still up over 440% since the trough. Up markets are not without their pain points. Since the last cycle trough, we’ve seen a >20% drawdown nearly every quarter, despite a general trend upward. Don’t panic. Look for opportunities. In particular, current valuations on digital assets outside of Bitcoin (‘alts’) could present an attractive entry point if you retain a fundamental belief in the long-term disruptive potential of digital assets. *The information herein is for general information purposes only, is not investment advice, and should not be used in the evaluation of any investment decision. You should consult your own advisers, including your own counsel, for accounting, legal, tax, business, investment or other relevant advice, including with respect to anything discussed herein. An investment involves a high degree of risk. Past performance is no guarantee of future results.

Our CIO and Founder, Colin Jones, will be speaking at The Tie's Innovate Denver! Catch the panel: "Crypto Narratives: While Adoption has Lagged, TradFi Needs DeFi" also featuring Dragonfly, SatLayer, Gemini and Nomadic Labs tomorrow at 1:30 pm. #ETHDenver #DigitalAssets #DeFi

Our CIO and Founder, Colin Jones, will be speaking at The Tie's Innovate Denver! Catch the panel: "Crypto Narratives: While Adoption has Lagged, TradFi Needs DeFi" also featuring Dragonfly, SatLayer, Gemini and Nomadic Labs tomorrow at 1:30 pm. #ETHDenver #DigitalAssets #DeFi

Liquidity can be a concern for investors looking to deploy meaningful capital in digital assets. However, as the market has grown and evolved, liquidity across a broader number of tokens has improved, and should not bar investors from looking further out the spectrum of tokens to gain diversified exposure. Mega-cap assets like Bitcoin, Ethereum, Solana, and Ripple show trading volumes in line with the top 25 most traded US public equities, based on 30 day average daily volume (ADV). However, as we have frequently stressed, investors should consider looking past just the largest names in order to capture exposure to the varied themes and opportunities of digital assets. Here, liquidity has also improved. Looking at the top 150 digital assets by market cap, we have seen trading volumes on centralized exchanges increase, to where the median name in the top 150 now has a 30 day ADV of ~$40mm, up from ~$6mm at the start of 2023. What’s more, over 80% of names in the Top 150 have shown average daily volumes of over $5mm over the past 30 days. While these volume figures are still well below levels on popular US equities, they show that with patience and adequate trading capabilities, it is possible to build positions in smaller tokens. In particular, access to a broad range of global venues is necessary to capture liquidity and efficiently trade a wide variety of tokens. The opportunities available in the digital asset space are bountiful, and liquidity is becoming less of a barrier to entry. *The information herein is for general information purposes only, is not investment advice, not an offer of an Outerlands Fund, and should not be used in the evaluation of any investment decision. Such information should not be relied upon for accounting, legal, tax, business, or investment advice. You should consult your own advisers, including your own counsel, for accounting, legal, tax, business, investment or other relevant advice, including with respect to anything discussed herein. An investment involves a high degree of risk including the loss of capital. Past performance is not necessarily indicative of future results.

“What we're trying to build at Outerlands are portfolios that can be plugged into a much more diverse institutional portfolio... to bring the best digital assets to those portfolios.” Diversification isn’t just for traditional finance—it works in digital assets too. Colin Jones of Outerlands Capital shares key insights on portfolio construction in the latest #TheGage episode! Listen to the full episode here:?https://lnkd.in/euithXwX #Digitalassets #CryptoInvesting #TheGage