Crypto & ESG: 2021 White Paper

Crypto & ESG 2021 White Paper - Sarson Funds Research Report

Crypto & ESG 2021 White Paper - Sarson Funds Research Report

The future of finance and investments leans toward sustainability and social responsibility. ESG investing, or Environmental, Social, and Governance-focused investing, aims to facilitate the marriage between corporations and a more sustainable, equitable world.

Otherwise known as Responsible Investing, ESG assets under management (AUM) made up one third of the total US-domiciled AUM by the end of 2020, and this measure is only growing. Rising in parallel, cryptocurrencies were the best performing asset class of the last decade and are strongly aligned with the ESG mission of sustainability, social-benefit, and community governance efforts.

Through the decentralized nature of cryptocurrencies and blockchain technology, the crypto ecosystem is taking cutting edge approaches to sustainability in order to achieve its mission of unifying the global economy with universally sovereign financial access. Together, ESG strategies and cryptocurrencies are equipped to build a more sustainable and equitable world.

Crafted by Portfolio Manager Blake Richman, Partner Marketing Manager Liam McDonald, and Blockchain Analyst Nathan Frankovitz, the Sarson Funds Crypto & ESG White Paper presents an in-depth overview of ESG, its impact on investment decisions, and its applicability in the cryptocurrency and digital asset market. Our aim is to provide the financial advising community with a credible source to better understand the power of crypto from both Wall Street and crypto experts.

Crypto ESG White Paper Sarson Funds Cryptocurrency Financial Advisor

DOWNLOAD THE REPORT HERE

Sarson Funds Launches Cryptocurrency Education and Certification Program for Financial Advisors

Sarson Funds announced the launch of its cryptocurrency financial advisor certification program today, with the aim of making advisors “crypto heroes” to millions of American investor clients who have otherwise been dormant from the accelerated growth of digital assets. The eight-part webinar series will be comprised of live bi-weekly webinars hosted on the Digital Wealth News education portal, beginning on September 14th, 2021, and running to December 19th, 2021.

Key Takeaways:

  • Sarson Funds announced the launch of its cryptocurrency financial advisor certification program, hosted in partnership with the Investments and Wealth Institute and Digital Wealth News.
  • The eight-part webinar series will be comprised of live bi-weekly webinars hosted on the Digital Wealth News portal, from September 14th, 2021 to December 19th, 2021.
  • Advisors who complete the series will earn CE credits, plus certification as a crypto advisor from Sarson Funds, awarded as a non-fungible token (NFT) – an industry first.

To view the full announcement, including downloadable images, bios, and more, click here.

Summer Greetings from Sarson Funds

Summer greetings from Sarson Funds,

We hope this letter finds you healthy, happy, and enjoying the last beautiful days of summer.

Cryptocurrency prices have kept us on our toes at Sarson Funds this summer, living up to their reputation for volatility. Announcements about China seeking to curtail the growth of Bitcoin within its borders coupled with the sharp about-face from Tesla’s astronaut-in-Chief, Elon Musk, on accepting Bitcoin temporarily seized the public narrative and contributed to selling pressures in May and June.

As we start the month of August, Bitcoin and other cryptocurrencies continue in a choppy sideways trading pattern, with most assets showing a high correlation to Bitcoin. Meanwhile Bitcoin is still searching for its equilibrium price in the $40,000 – $50,000 range. There are many reasons to be excited about what has been happening in the market. We would like to share a few of our observations with you.

Over the course of this year, the United States has become a top destination for cryptocurrency companies to reside. The SEC, under the thoughtful leadership of Gary Gensler, has shown its acute awareness of the durable value propositions digital currencies are able to offer for both the financial sector and for the consumer. Gary and his team have been working to educate Congress, the CFTC, the Federal Reserve, and the Executive Branch on the inevitability of the world’s evolving financial architecture. Thankfully, American-led innovation in digital assets has been keeping the future of finance located in the United States. Digital asset companies, including our partner firm lending giant Celsius Network Ltd, are moving their operations to the United States from other countries. This is quite a sharp contrast from two years ago, when Facebook’s Libra project received such a hostile reception from lawmakers that Libra promptly moved their entire operation out of the United States.

There have been signs all around us which show financial institutions are rushing into the cryptocurrency markets. Traditional Wall Street firms that were once anti-cryptocurrency such as Wells Fargo, Goldman Sachs, and CitiBank have recently built crypto brokerage divisions into their corporate strategies. BlackRock, Fidelity, and Bank of America have invested in Stablecoin companies (ex: Circle and Paxos). StateStreet and JP Morgan currently have hundreds of job postings seeking employees to fill their expanding digital currency and tokenization initiatives.  Institutions are moving with remarkable speed to establish their crypto-capabilities.

With all the excitement circling around cryptocurrency, we continue to invite and welcome the opportunity to help service your digital asset investment and educational needs.  Please reach out to us any time so we can show you how we are helping other advisors and their clients with this new asset class.

Warm regards,

John Sarson, CEO & Cofounder

Jahon Jamali, CMO & Cofounder

Accessing the Token Economy: How TokenMaker is Democratizing Access to the Token Economy

Non-fungible tokens, or NFT’s, have surged in popularity recently amongst cryptocurrency enthusiasts and investors alike. With tokenized digital art from creators like Beeple selling for millions, and big brands like Nike, Louis Vuitton, and more racing to develop tokenized solutions for their brand and products, the market demand for customizable token solutions stands to increase. To meet that demand, Sarson Funds believes that rapid no-code tokenization platforms like TokenMaker stand to benefit from this emergent trend in enterprise blockchain applications.

Please read our latest report, Accessing the Token Economy: How TokenMaker Democratizes Access to NFTs and Tokenization, which highlights how user-friendly do-it-yourself (DIY) tokenization platforms like TokenMaker can quickly meet enterprise demand for no-code business and user-oriented tokenization solutions.

Bitcoin and the “Pain Trade” Revisited

As an investor, when searching for direction in a volatile market, a useful heuristic to use is what traders lovingly referred to as “The Pain Trade” indicator. This indicator was described to me originally in 2007 by a New York Wall Street stockbroker this way, “The market will move in the direction to hurt the maximum number of people.” While everyone’s definition of the “Pain Trade” varies, they all address the tendency of markets to deliver the maximum amount of punishment to the larger consensus.  This is especially true when the underlying asset is a high profile asset such as shares of Apple, or in this case, Bitcoin. High profile public “pain” is especially more painful than low profile private “pain” and the market reacts accordingly.

At Sarson Funds, Bitcoin’s current rally and its refusal to settle is a great example of the “Pain Trade” principle in action. Thanks to the continuing and sustained efforts of industry leaders like Fidelity, Goldman Sachs, BlackRock, Intercontinental Group, CME, JP Morgan and others, Bitcoin is being normalized into existing financial frameworks and investors are getting caught flat-footed.  When will the rally stop? According to the “Pain Trade” indicator, not until a drop in price delivers an aggregate punishment that is greater in total pain than what those uninvested in Bitcoin are currently experiencing.

Our investment products are built by advisors and sold through advisors. We bring Wall Street standards for research, risk management, and transparency to digital asset investing so that you can safely incorporate cryptocurrency allocations into your clients’ investment portfolios. We offer white-labeled portfolios, client-focused educational pieces, and cryptocurrency regulatory insights. Our product lineup (fact cards enclosed) currently includes large and small coin cryptocurrency strategies and a large-cap “covered call” cryptocurrency portfolio that offers floating monthly income in excess of 20% annualized at today’s implied volatility levels.

John Sarson

Managing Partner & CEO

 

PS: If you would like to join our mailing list, please sign up at www.sarsonfunds.com or look for our LinkedIn in group, “Cryptocurrency Financial Advisors”.

Encryption Will Drive Cryptocurrency’s Next Innovation Wave

Encryption will drive cryptocurrency's next wave of innovation

Encryption will drive cryptocurrency's next wave of innovation

Securing a Blockchain-Built Future: How Cryptography will Drive the Next Cryptocurrency Innovation Wave

With world financial system begins to embrace the wave of blockchain-powered digital assets and cryptocurrencies entering the vocabulary of Wall Street and Main Street investors alike, we look ahead to the next big wave of crypto innovation – securing a blockchain-built future.

Cryptocurrencies and digital assets rely on secure, encrypted consensus to validate transactions and empower the mechanics of decentralized finance. Advances in computing processing power, and developments in quantum computing, mean the market for digital assets will need to respond with quantum resistant encryption solutions in order to propel blockchain technology to the next level of global adoption.

To educate digital asset investors, cryptocurrency financial advisors, and blockchain technology market analysts on the issues and opportunities in digital asset encryption advances, Sarson Funds is pleased to provide the first in a series of investor guides to understanding encryption and the market opportunities poised to emerge as the world’s blockchain infrastructure grows.

This first release includes two overview pieces designed specifically for digital asset investors interested in the market dynamics and investment opportunities in cryptocurrency encryption advances (available for download below):

First, is a white paper from the Sarson Funds analyst team:

Sarson Funds Blockchain Cryptography White Paper

The white paper is accompanied by an easy to digest compendium overview of digital asset cryptography:

Cryptography Investor Guide Sarson Funds

We trust digital asset investors and cryptocurrency financial advisors find these resources useful as the world transitions to a new era of democratized financial, personal data sovereignty, and a secure future built on blockchain.

By Liam McDonald

BarclayHedge Names 2 Sarson Funds Strategies in Top 5 Crypto Fund List

In the September 1st, 2020 BarclayHedge list of top performing crypto funds, both the Sarson Funds’ Large Coin and Small Coin strategies earned spots in the top five performing cryptocurrency hedge funds for July 2020.

Sarson Funds’ flagship Large Coin strategy, Blockchain Momentum LP, earned the number two spot on the list, up 35.25% MTD with the Small Coin strategy, Fifth Khagan LP, at number four, up 31.68% MTD.

Both Pantera Capital Management’s ICO Fund and Digital Asset Fund, as well Altana‘s Digital Currency Fund also made the top five.

See full listing below:

Click here for the full listing.

How Crypto-Exchanges Just Got Crypto-ed

All businesses are guilty of complacency at times.  Sometimes that complacency can remain unchecked for years. Ultimately, better, faster, cheaper wins. Western Union, MoneyGram, SWIFT, it’s been nice knowing you.  In the crypto industry, we call the disruptive application of blockchain technology “getting crypto-ed” (‘crypto’ being the placeholder for any and all applications of blockchain technology).

As it turns out, even disruptive crypto-startups themselves can get crypto-ed.

Such is the case now with crypto-exchanges. Coinbase, Bittrex, Binance, Kraken, Gemini and the like have attempted a head-on disruption of traditional stock and commodity exchanges. Buried under an onslaught of new regulation, however, the exchanges have not met the demands of either crypto traders or token issuers. Traders are demanding access to newly minted globally available tokens while token issuers are looking for markets to list their tokens.

Add to that the cost of listings and time. Exchange listings easily cost hundreds of thousands of dollars and often take months. Jurisdictional issues have also become a hindrance as exchanges are closing off individual token markets to traders in certain jurisdictions (such as the US and Europe).

Crypto-disruption is swift and without bias, even towards other crypto disruptors. So something had to give, and it did.  Crypto traders found a work-around in the form of a “swap” with another holder of the desired asset.  Startup decentralized platforms such as Uniswap, Balancer, Curve, Compound, Synthetix and many others have created marketplaces where traders buy and sell with one another in a trustless, near instant way, using Etherum-based smart-contracts as a behind-the-scenes framework for the transaction. This enables traders to swap one crypto for another without counter-party risk or the need for any third party involvement. And boy, did the market like it!  

(Source: Uniswap.info/home – August 25, 2020)

Transactions in this swap market happen “on-chain”, which in the opinion of anyone who believes in the core tenants of cryptocurrencies, is infinitely preferable to working with an exchange partner who may or may not be designated as a “custodian” by a governmental agency who ultimately can interfere with the execution of a transaction. 

These swap platforms have soared in popularity and have taken volume and its associated fees away from crypto-exchanges. Uniswap now does nearly $200mm in volume per day, more than most “established” exchanges. Also, the fee revenue for making a market (in a very crypto fashion) flows to the person providing the liquidity, not to the exchange. Mark it down as another fee disintermediated and returned to the customer.

 We’ve barely scratched the surface on the number and type of businesses that will be “getting crypto-ed” in the next few years. (Title insurers, mobile networks, and financial services – I’m looking at you).  Any business not leveraging new technology is at risk of innovation-borne disruption.  The best businesses know that constant technological vigilance is a prerequisite for survival.   Companies that have joined the Ethereum Enterprise Alliance see the barbarians at the gate and are making the right moves.  Unfortunately, sometimes even seeing the barbarians is not enough to save your business from being “crypto-ed”.

By John Sarson, CEO

Sarson Funds’ Strategies Named Month’s Top Performing Crypto Funds

In the August 18, 2020 NilssonHedge list of top performing crypto funds, Sarson Funds’ Large Coin and Small Coin strategies earned top honors as the month’s two best performing cryptocurrency hedge funds.

Sarson Funds’ flagship Large Coin strategy, Blockchain Momentum LP, earned the number one spot on the list, up 35% MTD, which was just ahead of the Small Coin strategy, Fifth Khagan LP, at 32% MTD. See full listing below:

The report caps off a series of recent performance awards for Sarson Funds cryptocurrency investment products, including recent awards from BarclayHedge.

Read the full list and article, HERE.

Future-Proof: EEA Driving Big Business to Ethereum

Since inception, Ethereum has courted the attention of large companies. At the enterprise-level, no blockchain protocol offers the robust maturity and prospects of Ethereum-powered smart contracts.

However, as CoinDesk reports, it wasn’t until 2017 that a formal large-scale corporate consortium around Ethereum came into fruition: the Enterprise Ethereum Alliance (EEA).

Sarson Funds has long covered the EEA and the powerful firms coordinating Ethereum best-practices across a diverse set of sectors. With market giants such as JP Morgan, Microsoft, Santander, E&Y, Citi and more, the EEA created a concerted effort to get large corporates and tech providers on the same page when implementing private (or “permissioned”) versions of Ethereum technology.

Thereafter, the EEA became a kind of standards organization for blockchain business, with an eye on a future state when the public blockchain might join with private implementations.

Check out the Sarson Funds Snapshot on the Enterprise Ethereum Alliance below.

You can read CoinDesk’s full article, written by Ian Allison, here.