Once-Dull Crypto Strategies Are Now Shining in the Bear Market

BlockTower Capital’s market-neutral fund, which manages more than $100 million, has about a 3% return so far this year. And London-based Nickel Digital, with $300 million in assets under management, advanced 0.49% in May when the collapse of Terra sent shock waves throughout the rest of the market and dragged a wide-encompassing index of digital assets down 25%. “This strategy sometimes might not look as attractive during a bull market where Bitcoin’s up 70%,” Rahul Rai, co-head of market neutral at BlockTower and former FX trader at Morgan Stanley, said in an interview. “In a bear market especially, the strategy really stands out. We’re absolutely seeing a lot of investor demand.”