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Family Offices Dive Into Crypto

Family-Offices-Dive-Into-Crypto

Since founding our fund, Alpha Sigma Capital Fund, LP in January 2020, we’ve talked with many family offices about their exposure to cryptocurrency. The world has shifted dramatically since Q1 2020 and attitudes toward crypto investing run the gamut: “resembles a Ponzi scheme” to “money 2.0 is a huge, huge, huge deal.” However, this is for certain: crypto is here to stay.

Family Offices want to gain exposure to blockchain/crypto but are concerned about the volatility and the risk. There’s the regulatory, reputational, governmental, environmental, and financial risk associated with cryptocurrency. Since January 2021, there have been two major corrections in the crypto market: May 2021 due to China miners move out; September 2021 due to regulatory scares, and Evergrande Group’s debt crisis. These two events resulted in massive corrections in Bitcoin and Ethereum that impacted the altcoin market. And, the volatility is likely to continue.

 

So, what’s a family office to do?

  • Educate the family and family office on the risks and opportunities. Participate at blockchain/crypto events, webinars, get access to research. Some of my favorites include Coinagenda and Blockworks.
  • Partner with great advisors like Alpha Sigma Capital that can offer insights on a particular blockchain/crypto project, an exchange, or a company.
  • Do your due diligence. Like all investments don’t rely on someone else’s endorsement. That may be the first step to getting your attention, but you need to do an assessment.

 

As you dive into crypto, I encourage you to sign up for Alpha Sigma Capital’s Research and Weekly Wrap-Up, where we share the top headlines for the week. In the meantime, click the link to access What You Need to Know About Blockchain/Cryptocurrency.

Please feel free to DM me with any questions. I would love to hear from you.

Sources:

  1. https://www.cnbc.com/2021/04/23/bitcoin-a-gimmick-and-resembles-a-ponzi-scheme-black-swan-author-.html
  2. https://www.forbes.com/sites/jeffbercovici/2013/04/29/big-vc-says-bitcoin-is-gold-2-0-its-a-huge-huge-huge-deal/?sh=187336397f38
  3. https://finance.yahoo.com/news/data-bitcoin-miners-make-us-the-industry-leader-after-exodus-from-china-140037538.html
  4. https://observer.com/2021/09/evergrande-china-property-debt-crisis-explainer/
  5. https://www.forbes.com/sites/billybambrough/2021/07/11/crypto-price-alert-bitcoin-and-ethereum-in-danger-after-shock-china-dump-warning/?sh=331ae2b16538
 
 
 
 
 
 
 

Sandra Ditore,

Partner

Alpha Sigma Capital

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Daniel Siciliano

F. Daniel Siciliano is an Independent Director of the Federal Home Loan Bank of San Francisco and Chair of the American Immigration Council. He is the former faculty director of the Rock Center for Corporate Governance at Stanford University and former Professor of the Practice and Associate Dean at Stanford Law School. His work has included expert testimony in front of both the U.S. Senate and the House of Representatives and for 2009, 2010, and 2011, alongside leading academics and business leaders such as Ben Bernanke, Paul Krugman, and Carl Icahn, Professor Siciliano was named to the “Directorship 100” – a list of the most influential people in corporate governance.

Siciliano was also co-founder, CEO and ultimately Executive Chairman of LawLogix Group, Inc. – a global software technology company named 9 consecutive times to the Inc. 500/5000, several times ranked as one of the Top 100 fastest-growing private software companies in the US and named to the US Hispanic Business 500 (largest) and Hispanic Business 100 (fastest growing) lists for 2010 and 2011. In 2012 he sold a majority stake of the company to PNC Riverarch Capital, continued as Executive Chairman, and led the sale of the company to Hyland Software/Thoma Bravo in 2015.

Siciliano is a co-founder and board member of the Silicon Valley Directors’ Exchange (SVDX), Chairman of the national non-partisan American Immigration Council, past-President of the League of United Latin American Citizens (LULAC) Council #1057, and an active member of the Latino Corporate Directors’ Association.


Siciliano’s related areas of expertise include executive compensation, corporate compliance, the legal and social impact of autonomous (AI/robotic) systems, and corporate technology strategy and security. He has served as a governance consultant and trainer to the Board of Directors of dozens of Fortune 1000 companies (including Google, Microsoft, Fedex, Disney, Entergy and Applied Materials), is an angel investor and consultant to several firms and companies in Silicon Valley, Hong Kong, India, and Latin America, and currently serves as an independent director on the board of the Federal Home Loan Bank of San Francisco. He lives in Los Altos, California.