Who Invented Cryptocurrencies?

4/17/2018

Copyright ©2018 DIGITAL ASSET RESEARCH

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4/17/2018

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• Firm Overview • Asset Classes • Risk Adjusted Returns • Portfolio Construction • Economic Measurements • Participants • Institutional Challenges

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We are a boutique research firm focused on the analysis of digital assets and the digital asset ecosystem for institutional investors.

We provide high quality, objective long form written content and data to hedge funds, family offices, asset managers, and VCs.

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Equity

Public Equity • •

Capitalization Developed or Emerging

Fixed Income

Sovereign Debt •

Developed or Emerging

Muni Debt Private Equity

•

• •

Corp Debt

•

Buyouts Growth Equity Venture Capital

Commodities Metals • •

Precious Industrial

Energy

Rev Source

Livestock • •

IG Debt HY Debt

Agriculture

Real Estate

Currency

Collectibles

Office

Inflation

Art

Healthcare

Interest Rates

Coins

Residential

Deficits/Debts

Stamps

Retail

Trade

Books

Specialty

Political Stability

Cards

Digital Assets 4/17/2018

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Digital Tokens

Equity

Fixed Income

Commodities

Vol

Real Estate

BTC

ETH*

S&P 500

EAFE

EM

BB Ag

IG Corp

HY Corp

EMD

BCom

Gold

VIX

REITs

Avg Return

18.8%

41.7%

1.2%

0.7%

0.5%

0.2%

0.2%

0.4%

0.1%

-1.0%

-0.3%

-5.6%

0.7%

Vol

65.5%

73.1%

2.8%

3.3%

4.3%

0.9%

0.8%

1.6%

2.8%

3.9%

4.7%

15.5%

3.7%

Return

247.9%

1621.7%

14.9%

9.1%

4.8%

2.0%

2.8%

4.9%

0.3%

-11.5%

-4.1%

-57.9%

8.4%

Vol

227.0%

253.3%

9.6%

11.5%

14.9%

3.0%

2.8%

5.7%

9.9%

13.4%

16.2%

53.7%

12.8%

Sharpe

1.07

6.39

1.13

0.45

0.05

(0.66)

(0.42)

0.15

(0.37)

(1.16)

(1.15)

0.35

Monthly

Annualized

Annualized

(0.50)

Source: Digital Asset Research; Indexes: S&PTR, MSCI EAFE, MSCI EM, BBarclay US Agg, BBarclays US Corp Intermediate, BBarclays US Corp HY; BBarclays EM USD Agg; Bloomberg Comm Index; Gold Spot; CBOE VIX; DJ Real Index * Note: 60 monthly observations with the exception of ETH which is 24 months

4/17/2018

Copyright ©2018 DIGITAL ASSET RESEARCH

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Digital Tokens

BTC ETH S&P 500 EAFE EM BB Agg IG Corp HY Corp

Equity

Fixed Income

Commodities

Vol

Real Estate

BTC

ETH*

S&P 500

EAFE

EM

BB Agg

IG Corp

HY Corp

EMD

BCom

Gold

VIX

REITs

1.00

0.18

0.18

0.16

0.05

0.07

0.13

0.16

0.09

0.10

(0.01)

(0.25)

0.06

1.00

(0.09)

0.07

0.09

0.30

0.19

0.01

0.23

(0.21)

0.31

0.12

(0.11)

1.00

0.86

0.74

(0.17)

0.22

0.75

0.52

0.48

0.07

(0.80)

0.65

1.00

0.83

(0.05)

0.34

0.79

0.70

0.53

0.16

(0.76)

0.62

1.00

0.04

0.41

0.75

0.83

0.59

0.33

(0.63)

0.58

1.00

0.81

0.18

0.40

(0.06)

0.38

0.13

0.38

1.00

0.57

0.67

0.24

0.42

(0.22)

0.60

1.00

0.71

0.64

0.29

(0.62)

0.68

1.00

0.58

0.45

(0.44)

0.62

1.00

0.50

(0.33)

0.30

1.00

0.05

0.22

1.00

(0.54)

EMD BCom Gold VIX REITs

1.00

Source: Digital Asset Research; Indexes: S&PTR, MSCI EAFE, MSCI EM, BBarclay US Agg, BBarclays US Corp Intermediate, BBarclays US Corp HY; BBarclays EM USD Agg; Bloomberg Comm Index; Gold Spot; CBOE VIX; DJ Real Index * Note: 60 monthly correlations with the exception of ETH correlations which are 24 months

4/17/2018

Copyright ©2018 DIGITAL ASSET RESEARCH

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Source: Digital Asset Research

4/17/2018

Copyright ©2018 DIGITAL ASSET RESEARCH

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First investors in crypto, reverse of most technological trends

Traditional and crypto specific

Assessing managers or making direct investments

Grappling with structure issues

Threats and opportunities

SEC pushback around applications 4/17/2018

Copyright Š2018 DIGITAL ASSET RESEARCH

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Safeguarding of private keys for those that self custody

Pooled investment vehicles >$150M AUM required to have a qualified custodian

Possibility of tokens qualifying as securities requires proper licensure for crypto exchanges

Lack of standardization around benchmarks and token valuation

No centralized repository for basic token information 4/17/2018

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info@digitalassetresearch.com www.digitalassetresearch.com

4/17/2018

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