6 Reasons You Should Ask Your Financial Advisor About Crypto

6 Reasons You Should Ask Your Financial Advisor About Crypto

1. Crypto is the fastest growing asset class of the past decade

Crypto’s lexicon can be confusing to even seasoned investors, but the numbers are indisputable. More specifically, crypto is the best performing asset class of the last decade. Many successful investors have already broadly embraced crypto, and even long-time skeptics like Paul Tudor Jones, Mike Novogratz, and Kevin O’Leary are now embracing the asset class. 

A July 2021 Fidelity white paper cited growing institutional interest for the expanding set of channels offering crypto exposure. A recent Goldman Sachs report noted that while most family offices are not yet invested in cryptocurrencies, almost half are now considering ways to initiate exposure in the future. Banking giants Morgan Stanley, Goldman Sachs, and JP Morgan are now racing to compete with successful fintechs offering crypto like Robinhood, PayPal, Square, and Coinbase.

2. Millennials and Gen Z Have Already Embraced Crypto – And Boomers Will Need to Start Paying Attention

A Fall 2020 survey by Gemini revealed 42% of respondents holding crypto were between the ages of 18-34, while an additional 35% were ages 35-44. Goldman Sachs research suggests Millennials are one of the largest generations in history, and as such “are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come.”

According to the latest CNBC Millionaire Survey almost 50% of millennial millionaires allocate 25% or more of their wealth to crypto. Meanwhile Gen Z is already calling Bitcoin “Boomercoin”, instead opting for even more contemporary digital assets. 

3. Crypto Is Disruptive

“Cryptocurrency” has become a misnomer as the market has diversified. Indeed most emerging crypto assets today seek to first offer utility rather than serving as a de facto currency. 

Decentralized Finance (DeFi) protocols on networks like Ethereum are disrupting private lending, borrowing, and market making services. Consumers can access these decentralized, unbiased services 24/7 without worrying about KYC (Know Your Customer). As DeFi matures, a diversity of use cases are being built, including asset fractionalization and parametric insurance. These innovations could profoundly change the real estate and insurance industries by lowering barriers to entry and removing opaque, unreliable intermediaries.

4. Crypto is Community and Culture

Blockchain technology is opening new pathways for artists and consumers to create, communicate, and transact. Audius’s decentralized music-streaming network is giving artists unrestricted creative license without need for costly and controlling middlemen, while Livepeer targets similar disruptive creation in the video streaming industry. Celebrities and sports teams are even tokenizing themselves to deepen fan engagement through issuing token-holder incentives like voting and rewards.

Burgeoning metaverses, play-to-earn games, and NFT (non-fungible token) collectibles/art markets are also fueling the fire of crypto adoption. NFTs offer users ownership of provably scarce digital assets, something previously impossible in earlier iterations of online communities. These new digital economies are processing $100 million + weekly trade volumes for assets such as metaverse real estate, in-game characters and items, and generative art.

5. Crypto is ESG

ESG investing saw exponential growth in the last decade, with relevant investments representing ~25% of all new capital invested in 2020, versus ~1% in 2014. Morningstar research suggests net new capital allocated to ESG offerings increased from ~$5 billion in 2015 to $51.1 billion by the end of 2020.

Crypto and ESG are already converging . Despite criticism for its high energy usage, Bitcoin’s appetite for low-cost electricity makes renewable energy opportunities profitable through energy arbitrage, and forward-thinking miners are collaborating to further address ESG concerns through initiatives like the Bitcoin Mining Council. Beyond Bitcoin, myriad token projects are gaining popularity as they seek to fulfill environmental, social, and governance-related issues through their efficient network economies and governance structures like DAOs.

6. Crypto could just be getting started

Despite its already immense appreciation, crypto’s potential remains largely untapped. Bitcoin alone could have over a ten-fold increase from its current ~$885 billion market cap before it fulfills its predominant narrative to surpass gold as a store of value. Beyond Bitcoin, DeFi applications built on protocols like Ethereum have hardly scratched the surface of the global derivatives markets, which some estimates place notional value between $558.5 trillion – $1.0 quadrillion (total crypto assets are currently valued at ~$2.15 trillion). 

Gemini’s same Fall 2020 survey estimated 14% crypto asset investment market penetration among U.S. adults. As Icon Ventures’ Michael Mullany points out, technological adoption begins to accelerate as early adopters give way to the early majority at ~15% market penetration. KPMG’s “Consumer Adoption: How to predict the tipping point” substantiates this idea, illustrated by the S-curve adoption model. However, discrepancies between U.S. and foreign adoption and inconsistent regulatory landscapes indeed make predicting an adoption “tipping point” difficult to estimate with precision.

As IBM suggests, crypto’s ability to broaden financial inclusivity by “banking the unbanked” is compelling. With billions of people worldwide yet to have access to meaningful internet connectivity, the maturing crypto asset industry could grow significantly by onboarding internet newcomers in the coming decade. El Salvador, the world’s first country to adopt Bitcoin as legal tender, already estimates it will save $400 million (~1.62% of their 2020 GDP) in remittance fees per year according to CNBC

As investor Naved Abdali once said, “It may take some time, but capital will eventually flow to the most logical place.”

 

A Special Announcement From Sarson Funds

On September 2nd, Sarson Funds announced the launch of its cryptocurrency financial advisor certification program, 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 consist 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.

By Nathan Frankovitz & Bryan Prohm

 

Crypto at a Crossroads: Is the Era of Ethereum Dawning?

Crypto at a Crossroads: Is the Era of Ethereum Dawning?

 

The “London” Hard Fork is now live on Ethereum’s network as of Block 12,965,000, minted around 8:34 AM EDT, August 5th, 2021. Importantly to investors, the upgrade implements changes to the platform that may have a profound impact on the future of our current crypto economy. 

While the London upgrade implements five Ethereum Improvement Proposals (EIPs), EIP-1559 stands out. By introducing token burns, EIP-1559 changes Ether’s tokenomics by reducing long-term supply projections. Previously, 100% of transaction fees on Ethereum were allocated to miners as reward for processing and recording network transactions. With EIP-1559 implemented, however, there is now a base fee applied to network transactions. This base fee is burned, destroying the Ether and reducing its total supply.

Basic economics dictates that a reduction in supply or an increase in demand increases the price of an asset, given all else is held constant. Thus, tokenomics, which describes the supply and demand characteristics of a crypto token, is a core consideration for investors. Bitcoin’s tokenomics famously utilize a hard cap, meaning that the maximum supply of Bitcoin created could only ever reach 21 million. Digitally-verified scarcity like Bitcoin’s was never possible until the advent of blockchain technology; today, it is a driving narrative for decentralized stores of value.

The implementation of Ethereum’s EIP-1559 marks an important milestone for its position along the spectrum between inflationary and deflationary assets. Even though Ethereum still does not have a hard cap like Bitcoin, both of the assets are technically disinflationary in their current form—this is commonly misunderstood, as Bitcoin is often touted as being deflationary. In reality, Bitcoin is disinflationary. Disinflation occurs when the rate of inflation is decelerating. Current estimates put Bitcoin’s inflation rate between 1.5% – 2.0%; this will likely continue to decline as halvings continue to reduce the issuance rate of Bitcoin relative to its price. 

Source: woobull.com

Unlike Bitcoin, however, Ether’s supply may actually begin to decrease if token burns resulting from EIP-1559 begin outweighing new Ether issuance from miners. So long as Ether’s price holds steady or appreciates against a dwindling supply, Ether becomes truly deflationary. Ethereum 2.0 implementation could make such a deflationary scenario even more pronounced as Ether mining becomes obsolete and Ether issuance continues to decline. Moreover, Ethereum 2.0 scaling and continued network expansion will likely increase the rate of Ether-burning transactions. While some of Ethereum’s community continue to debate introducing a supply cap to Ether, both the current and upcoming deflationary mechanisms suggest that a cap may be unnecessary to perform as a store of value.

Ethereum number of active addresses
Source: glassnode.com

Ultrasound.money is a new website tracking Ether’s supply in the wake of EIP-1559. The site’s Q&A states, “Ultra sound money is an Ethereum meme focusing on the likely decrease of the ETH supply. If capped-supply gold is sound, decreasing-supply ether is ultra sound.” Clearly, this new narrative for Ethereum encroaches on Bitcoin’s “Gold 2.0” status as the ultimate digital store of value. The site also references Nikhil Shamapant’s (known on twitter as @SquishChaos) 77 page report on Ethereum entitled, “Ethereum, The Triple Halving”. In the report, Shamapant draws a parallel between Ethereum 2.0’s upcoming supply issuance reduction with previous Bitcoin halvings. More specifically, he equates a 90% reduction in issuance with 3 Bitcoin halvings. The implications this could pose for Ether’s price are hard to ignore.

Raoul Pal, CEO/publisher of The Global Macro Investor and CEO/co-founder of Real Vision Group recently spoke with YouTube channel Altcoin Daily on his recently written article, “The Greatest Trade in the World”, substantiating his decision to sell significant amounts of his Bitcoin for Ether. Acknowledging Ethereum 2.0’s inevitable staking unlock, Raoul states, “I think the unlock will probably lower the price. But between now and that unlock? Oh my god, this is one of the best setups I’ve ever seen. I think arguably better than Bitcoin in March 2020.”

Without doubt, Ethereum’s fundamental developments against the already blistering backdrop of the broader crypto space can make such speculations difficult to process. At Sarson Funds, we believe that thorough and unbiased analysis, disciplined portfolio management, and appropriate risk tolerance are necessary to maximize the value we create through digital asset investing. In pursuit of these goals, we welcome engagement from our readers. What do you think about Ethereum, EIP-1559, Ethereum 2.0, and the broader markets? Follow us on Twitter, LinkedIn, and check out our newsroom

Dollars Gone Digital: Visa Leads Fintech Integration with Crypto.com

Visa allows crypto payments for Crypto.com

Visa allows crypto payments for Crypto.com

Major news outlets started this week off with headlines reporting Visa’s new pilot program with Crypto.com. According to Yahoo Finance, Crypto.com has traditionally sold crypto assets to settle its obligations with Visa. Instead, the 10m+ user exchange will now be able to pay directly with USDC. In yet another milestone bridging the old world of finance with blockchain protocols, Visa told Reuters that it “plans to offer the option to more partners later this year.”

Known as a “stablecoin”, USDC (USD Coin) is redeemable at a 1:1 rate for US dollars. Built on standards governed by Centre, a “membership-based consortium that sets technical, policy and financial standards for stablecoins,” USDC is fully backed by reserve assets and is issued by a variety of regulated financial institutions. By digitizing the dollar through blockchain technology, USDC offers greater transactability and smart contract functionality than its cash predecessor.

Meanwhile, China, Japan, and numerous other countries are piloting their own “stablecoins,” called central bank digital currencies, or CBDCs. According to Josiah Hernandez, head of the CBDC Group, “What has spurred interest in CBDC issuance is the realization that it offers a holistic solution for updating financial infrastructure and enables instantly settled payments at no cost to customers.” With fintech giants and central banks alike working toward greater blockchain adoption, we are excited to see what’s next.

By Nathan Frankovitz

Crypto Kings and Queens: Emerging Leaders in the World of Digital Assets

Over the past decade, there has been a multitude of pioneers in the crypto space. As new advancements and updates are made each and every day, there is an overload of information to constantly keep up with. As the public looks to further understand the new comings of digital assets, a variety of crypto leaders have emerged as trusted experts in the industry. These people are developers, entrepreneurs, analysts, engineers, investors, and overall emergent leaders that contribute their knowledge, ideas, and expertise to further educate and grow the digital asset community. 

As 2021 has kicked into full swing, several young professionals have embraced the shift from a traditional financial system to one influenced by the power of digital assets. One individual in particular who has been taking the crypto world by storm is Flori Marquez. Since graduating from Cornell, Marquez has gone on to become the co-founder of BlockFi, making her way onto the Forbes 30 under 30 finance list. BlockFi is a very successful and rapidly growing crypto-lending platform that allows clients to open accounts with up to 8.6% APY, with revenues of over $100 million projected for the year ahead. Marquez keeps the public up to date on all things BlockFi, alongside her daily thoughts and opinions via Twitter, where her bio reads, “bridging the worlds of fintech and blockchain”.

While the capabilities of cryptocurrencies are spectacular, they would not be made possible without the engineers behind the protocols that make crypto transactions successful. Amiti Uttarwar is a 28-year-old Nevada native who works as a software engineer and coder of Bitcoin’s protocol in Silicon Valley. She strives to enhance the privacy of wallets in Bitcoin Core by studying the various transactions made on peer-to-peer lending platforms. Her efforts to help to facilitate the process of buying and selling cryptocurrencies will allow for further mass adoption and will aid the everyday utilization of digital assets. 

Another emerging leader who deserves some recognition is Jesse Peltan, he is the co-founder of HODL ranch, a bitcoin mining company located in Texas. Peltan alongside his team works to allocate their resources to lower the cost of bitcoin mining to make bitcoin more profitable overall. His innovative approach to harvesting natural windpower elements and renewable energy sources makes for low costs in Bitcoin mining, as demand for advanced efficiency of networks increases. Mining historically can be difficult with a variety of costs, alongside trials and errors of harvesting energy, distribution, etc, and Peltan works to facilitate that process.

Lastly, a dominant force in the crypto world is Brian Armstrong, CEO, and co-founder of Coinbase. As Co-Founder and CEO, Armstrong has grown Coinbase into the largest crypto-exchange in the United States. He has built Coinbase up to be a secure and compliance-oriented platform in which accredited investors trust. In tandem, the trust that Coinbase has fostered among the community has contributed to the recent institutional adoption we have seen. According to Forbes, “Coinbase is the first principal issuer of debit cards that allow customers to spend their cryptocurrency anywhere Visa is accepted and to withdraw cash from any ATM,” thus making cryptocurrencies much more accessible for everyday use cases. Armstrong has a strong presence on Twitter and social communities as well, voicing his updates, opinions, and other crypto-related discussions for the crypto-curious to see.

These are just a few of the many young individuals who have seen firsthand just how far the blockchain and crypto sector has become and ran with it. Though their own day-to-day hustle and bustle may differ, they uphold a shared belief that the future of finance lies within the capabilities of digital assets and cryptocurrencies powered by blockchain technology. At Sarson Funds, we believe in that same shared idea. To learn more about our investment strategies, visit our YouTube Channel, follow us on social media, or visit our website to learn more about our holistic educational approach to crypto and digital asset investing.

By Abigail Almonte

Smart Contracts: A Future of Frictionless Commerce

Smart Contracts: The future of financial operations - Sarson Funds Cryptocurrency Financial Advisor

Smart Contracts: The future of financial operations - Sarson Funds Cryptocurrency Financial Advisor

As finance becomes more digitized, it is important to consider the different ways our preexisting financial infrastructure can be more decentralized. One of the major shifts in peer to peer, business to business, and global commerce is the movement toward smart contracts as the mediation between transactions. Smart contracts are an application of blockchain technology that automatically facilitate transactions between two parties, removing the need for banks or middle institutions to be the intermediary in a transaction, and record the history of the transaction on the blockchain. The purpose of this blog is to inform the finance community on one of the most lucrative trends in the crypto industry to help them prepare for the changing landscape of fintech innovation.

Removal Of Counterparty Risk

In the current financial framework, interactions between people and businesses have always required some sort of intermediary to approve and execute a transaction. While the traditional system works, it is inefficient. The costs of involving a third party intermediary to approve a transaction are not only steep but unnecessary. Depending on the distance a transaction must travel, these transactions take several days to fully execute, changing hands multiple times and accruing more and more unnecessary costs. As each transaction passes through different banks, the risk of loss and hack grow higher. Smart contracts simplify transactions by removing unnecessary steps, creating a smoother pathway for transactions to occur, removing counter party risk, cost and time inefficiency for both of the involved parties.

Enabling the Future of Commerce

P2P Use Cases

One of the most prominent use cases for smart contracts in the current financial landscape is between individuals engaging with decentralized exchanges like Aave, Compound, and Uniswap where users can lend and borrow crypto for high yields. In these exchanges, users join lending pools where they can lend and borrow crypto with other users at agreed upon interest rates, agreements that are executed by smart contract deployment on the platform. These smart contracts, which are written code on the blockchain, execute these lending and yield agreements automatically to ensure both parties meet their agreed upon contract terms.

B2B and B2C Use Cases

Another critical use of smart contracts are in supply chains. Supply chains are using smart contracts to confirm and track shipments and deliveries as they take place, creating an instantaneous way of payment, transaction validation, and record keeping throughout the processing and delivery of consumer goods. Smart contracts are making supply chains more efficient by digitizing the payment, validation, and record keeping of the processes that goods go through from production to consumer, creating quicker and more cost efficient ways of running a supply chain.

Use cases for financial institutions

While banks are slow to adopt blockchain, the use cases for the finance community will shape the future of financial operations. Banks like JPMorgan are pioneering the future of smart contract deployment in banking as they recently launched their own blockchain, Liink, and stablecoin, the JPM coin. JPMorgan uses the JPM coin with smart contract mediation to perform risky interbank transfers and international payments instantly and without the need for an intermediary, removing the inefficiencies described above from their affairs. JPMorgan is blueprinting a lucrative landscape for other banks to follow suit with blockchain and smart contract deployment.

At Sarson Funds, we believe the financial community must keep a close eye on the development of smart contract capabilities as these automated systems enable greater, frictionless financial freedom. We believe that as the ecosystem develops, smart contracts will become the future of P2P, B2B, and B2C commerce.

By Liam McDonald

Why Bitcoin? Narratives Driving Past & Present Adoption, Explained.

Looking back on last decade’s best-performing asset.

More than a decade after Bitcoin’s inception, the world’s first cryptocurrency remains poorly understood. No matter your success investing in other asset classes, it can be overwhelming to continually hear news about Bitcoin when conversations between its proponents and skeptics remain veiled in technobabble. Even worse, mainstream coverage gravitates toward sensationalism, rather than allowing proper in-depth analysis of the world’s first cryptocurrency. This article offers an antidote to today’s noisy headlines by instead investigating the fundamental ideas driving Bitcoin’s past and present adoption. Our mission is to bring transparency to crypto education to help you decide for yourself on whether Bitcoin is an opportunity worth pursuing.

First, let’s examine how Bitcoin (BTC) serves as money. 

Simply put, Bitcoin has taken the characteristics of legacy monies and improved upon them: First, it is durable, since each Bitcoin’s record is saved on the blockchain; second, it is mobile, as Bitcoin can be sent anywhere on earth in hours, 24/7; third, it is uniform (no single Bitcoin is more valuable than another); fourth, it is scarce, as there is a hard cap of 21 million Bitcoin that can ever be created; fifth, Bitcoin is divisible up to 8 decimal places, making it scalable; lastly, it is identifiable, as the Bitcoin network automatically verifies each transaction’s legitimacy. While it is clear that each of these properties is essential to Bitcoin’s usefulness as a currency, some may be bigger strengths than others. Accordingly, narratives surrounding Bitcoin’s fit within the global economy have changed over time.

Now, let’s go back to when it all began.

On January 3rd, 2009, Bitcoin’s pseudonymous creator Satoshi Nakamoto mined the “genesis block”, or the first public transaction record on the Bitcoin network blockchain. As Bitcoin’s network rose from the ashes of the 2007-2008 financial crisis, Satoshi etched a timeless commentary in this first block’s code; “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” In congruence with today’s zeitgeist for the decentralization of finance, we interpret Satoshi’s message as a rebuke to central bank monetary manipulation, since Bitcoin’s vision for “A Peer-to-Peer Electronic Cash System” could make such actions obsolete over time. As mentioned, however, Bitcoin’s role in the emergent decentralized financial system may not manifest as originally imagined. In 2021, is Bitcoin truly peer-to-peer electronic cash, as asserted in the Bitcoin Whitepaper? If not, then what forces continue to drive Bitcoin’s price upwards, in addition to burgeoning markets for thousands of other cryptocurrencies? 

Think gold, not cash.

From January 2020 to January 2021, the US Federal Reserve increased the dollar’s monetary base from $3.44T to $5.25T (52.5%); in other words, about a third of all circulating US dollars were printed after 2019. In contrast, Bitcoin’s supply increased from 18.19B to 18.61B (2.3%) in the same time frame. By virtue of its supply’s predictable, decentralized, and deflationary production, Bitcoin became a popular safe-haven asset for investors hedging against fiat inflation. Accordingly, Bitcoin outperformed virtually every other asset class in 2020—including the millennia-old incumbent store of value, gold. While it’s true that gold has real-world industrial and cosmetic applications, these account only for a fraction of its market cap. As institutional and retail investors continue to realize Bitcoin’s superior qualities as a store of value, we believe Bitcoin will garner more acceptance as “Gold 2.0.”

But what about peer-to-peer electronic cash?

In 2017, it became clear that Bitcoin’s usefulness as peer-to-peer electronic cash was impractical in its current form. Simply put, Bitcoin was bottle-necked by limitations in its code that capped the network at roughly 7 transactions per second. However, debates about whether to or how to address these concerns were controversial among Bitcoin developers, ultimately leading to the creation of “forks.” These forks, such as Bitcoin Cash (BCH) and Bitcoin Satoshi Vision (BSV) are essentially new blockchains independent from Bitcoin’s original network. However, these projects struggle with concerns about network decentralization and security

While transactability is important for utility as peer-to-peer electronic cash, network security is paramount—without it, Bitcoin would have no underlying value. Is the vision for peer-to-peer electronic cash dead, then? Will Bitcoin always be too slow and expensive to transact for coffee? We think not, long-term. At Sarson Funds, we continue to monitor the market for technologies promising scalability for Bitcoin payments without compromising the security of its core network. With institutional players like Visa, Paypal, and Square stepping into the space, payment solutions seem like only a matter of time. In the meantime, however, Bitcoin investors may have to be content with the world’s first cryptocurrency serving only as the ultimate decentralized digital store of value. That’s a pretty good start if you ask me.

By Nathan Frankovitz

Defi Demystified: The Investor Guide to Decentralized Finance

Investor Guide to DeFi: Sarson Funds Cryptocurrency Financial Advisor

Investor Guide to DeFi: Sarson Funds Cryptocurrency Financial Advisor

Over the past few months, Sarson Funds has focused much of our analyst efforts on exploring the capabilities of decentralized financial protocols, commonly known as DeFi. DeFi has become the hottest trend in crypto over the last year, with new protocols being built every day in an effort to tokenize and decentralize traditional financial services. As of February 23rd, the total value locked in DeFi was $37.5 billion, marking an incredible uptick in investment and innovation since this time last year, when DeFi’s total value locked was under $1 billion.

As the DeFi ecosystem develops, we see it as our fiduciary responsibility to provide our community with the information they need to best understand and harness this emerging frontier of decentralized financial capabilities, so we unveil the highly anticipated Defi Demystified: The Investor Guide to Decentralized Finance.

Crafted by CIO Daniyal Inamullah, CFA and Sr. Blockchain Analyst Jacob Stelter, DeFi Demystified presents an in-depth overview of DeFi, its capabilities, and the future of the ecosystem. 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.

As news and inquiries about this emerging ecosystem arise, please do not hesitate to reach out to us for the best-in-class DeFi education and investment strategies.

For more on us, please visit www.sarsonfunds.com, or schedule an appointment with one of our teammates, here.

Sarson Funds’ Crypto & Income Strategy is Best Performing Fund in Q4 2020

Sarson Funds Crypto Strategy Award

Sarson Funds Crypto Strategy Award

Key Takeaways:

  • Crypto fund managers saw record performance numbers in 2020, according to CryptoFund Performance.
  • Sarson Funds’ Crypto & Income Strategy received top performance honors for Q4 2020.
  • Financial advisors are seeking new strategies for investors as the blockchain ecosystem grows and regulatory clarity is enhanced.

According to Crypto Fund Research, Sarson Funds’ Crypto & Income Strategy (Ax Momentum, LP) was the best performing crypto fund and best performing crypto quant fund of Q4 2020, recording a 315.9% return for the quarter and a 365.7% return for the year. This award was picked up by Yahoo in a recent release, here.

The Crypto & Income Strategy is the first in the cryptocurrency space to turn one of the biggest complaints about investing in cryptocurrency – volatility – into a useful feature: current income. The strategy does this through a covered call writing program on some of the largest cryptocurrencies trading on established US-based exchanges as well as staking and masternodes. As financial advisors look to fill the void for client yield, the Crypto & Income Strategy has seen a surging amount of interest from investment managers.

“Part of our responsibility is to provide investors with both unbiased education and diverse transparent strategies to compliment the developing cryptocurrency regulatory and market landscape. With this comes new opportunities, and we expect other top performing crypto fund managers to look at expanding digital asset investment options as the asset class continues to mature,” Sarson Funds CEO John Sarson said in a statement.

For more information about us and cryptocurrency investor education, please visit www.sarsonfunds.com, or schedule an appointment with one of our teammates, here.

By Liam McDonald

Ethereum: Pioneering the Future of Financial Services

Ethereum: The Future of Financial Services

Ethereum: The Future of Financial Services

Congratulations—you’ve made it down the Bitcoin rabbit hole, and now you’re asking the tougher questions. If Bitcoin is the ultimate digital store of value, then what are all these other cryptocurrencies up to? What is Ethereum, how does it differ from Bitcoin, and why are prominent investors suddenly talking about it? Perhaps you’ve seen Ethereum’s (ETH’s) impressive price appreciation and are curious about future price movement. In this article, we will uncover Ethereum’s present use cases, recent price appreciation, and remaining upside potential.

Native to the Ethereum network, Ether (ETH) is a cryptocurrency like Bitcoin. However, Bitcoin’s value is commonly understood as a function of its adoption as a decentralized and deflationary store of value. In contrast, Ether’s value is derived from user demand for smart contract execution on the Ethereum network. In essence, smart contracts execute decentralized applications (dApps) automatically, creating value in part by eliminating the need for central authority. Because Ethereum’s bandwidth is limited, users pay transaction fees with Ether to incentivize miners (network transaction validators) to process smart contract execution. Since anyone can create a dApp, the Ethereum network has become a vibrant and competitive ecosystem for technological innovation. With promising opportunities to decentralize and automate (read: disrupt) some of the world’s most valuable markets in finance, logistics, real estate, and more, exposure to Ethereum and its dApps may be a critical component to the modern investor’s successful portfolio.

So, what dApps exist today that contribute to Ethereum’s soaring values? Lending protocols such as Aave (AAVE) and Compound (COMP) enable users to earn interest or borrow crypto instantly. Synthetix (SNX) enables users to issue and trade synthetic assets that track the price of external assets, such as US dollars or exchange-traded stocks, making derivatives more accessible and liquid. Decentralized exchange (DEX) protocols like Uniswap (UNI) facilitate automated trading of Ethereum tokens through liquidity pools, allowing users to maintain custody of their assets as opposed to being held by centralized exchanges. Though these are only several examples, these rapidly growing dApps demonstrate real adoption and represent a broader wave of change which echoes Bitcoin’s ethos of decentralization: the decentralization of finance, or “DeFi.” Observing this trend begs the question: How much higher can ETH’s valuation go?

At the time of writing, Ethereum’s market cap is hovering around $200B USD; one year ago, today, that figure was $13B. Still, Ethereum accounts for only a miniscule share of wealth when compared to the stock markets. Globally, stock markets have an estimated value approaching $90T. But the financial markets don’t end there. Low-end estimates of global derivatives markets are $560 trillion. High-end estimates reach as high as $1.2 quadrillion. Considering the recent advent of dApps like Synthetix, it seems that Ethereum may just be getting started tapping into these markets.

When faced with Ethereum’s exploding levels of innovation and adoption, it is easy to get carried away with such numbers. In truth, nobody can precisely predict the extent to which Blockchains such as Ethereum will continue to replace legacy financial systems. Nevertheless, it is crucial to understand the enormity of Ethereum’s upside potential and consider the risk of not being exposed to its growth. At Sarson Funds, we believe the trend of decentralization will continue to manifest itself through Ethereum and other blockchain-based technologies like DeFi. For education and news updates on other emerging cryptocurrency sectors like NFTs, DAOs, stablecoins, internet-of-things, data sovereignty, and more, follow us on Twitter, LinkedIn, and check out our newsroom.

By Nathan Frankovitz