According to the interviewee, digital assets like bitcoin (BTC) provide a superior risk-reward ratio, exceeding three times that of the S&P 500, making them a strong standalone asset class for portfolio diversification. Public blockchains ensure real-time transparency and trustlessness, reducing counterparty risks, while DeFi innovations eliminate intermediaries like banks, improving capital efficiencies. Infrastructure enhancements such as MPC technology and multi-sig wallets have bolstered security and usability. Obstacles include recency bias from events like FTX's collapse and confirmation bias, but traditional finance faces similar counterparty risks as seen with institutions like JP Morgan. For alpha generation in volatile markets, strategies include dollar cost averaging on assets like ETH, setting specific trading plans, and trend investing based on adoption curves, monthly data points, and technological progression. A mentioned institutional fund utilizes quantitative signals for crypto investments (source: interview).

According to the cryptocurrency expert interviewed, digital assets like BTC and ETH provide a superior risk-reward profile compared to traditional assets, with Bitcoin's performance ratio against the S&P 500 exceeding three to one. The expert cites blockchain transparency, trustless systems, and DeFi efficiencies as key advantages, while noting obstacles such as recency bias from events like FTX and Celsius failures, and a lack of understanding about TradFi risks like fractional reserve banking. For generating alpha in volatile markets, the expert recommends accumulation strategies such as dollar-cost averaging into top assets like ETH, combined with trend-based investing focused on adoption data and technology progression. A managed fund targeting institutional investors is highlighted for its disciplined approach using quantitative signals.