7 Years, Multiple Crypto Crashes, One Consistent Winner
The Episode at a Glance
Summary
Yannis Georgandelis discusses how Block Asset Management has sustained institutional-grade digital asset management through seven years of volatile crypto cycles. He explains why multi-manager diversification is critical for protecting against single-point failures like exchange collapses, outlines red flags in fund due diligence, and identifies market-neutral strategies as the best approach in downturns. Looking ahead to 2026, Georgandelis highlights deep value opportunities in DeFi protocols trading at 5–6x earnings—three times cheaper than US equities—signaling potential for significant recovery once the current correction phase ends.
Guest
Yannis Georgandelis Chief Investment Officer at Block Asset Management (BAM). Georgandelis founded the world's first institutional-grade blockchain fund-of-funds in 2017, before Bitcoin and Ethereum ETFs, institutional custody infrastructure, or regulatory clarity existed. He has navigated seven consecutive years of crypto market cycles and built BAM's multi-manager diversification approach to institutional digital asset investing.
In Yannis's Words
"You shouldn't put all your eggs in the same nest. Everything could happen. You can have an exchange going bust or a collapse for a single asset manager."
03:19 Multi-Manager Diversification
"The blockchain technology was so promising with many use cases that we thought this is going to grow exponentially. We came up with a diversified fund of funds offer which would allow investors to invest in the sector without taking unnecessary risks."
01:32 Early Conviction in Digital Assets
"Bitcoin and Ethereum ETFs and regulatory clarity in the US, Europe's MiCA regulation have validated cryptos as a legitimate part of a portfolio. Institutions are now increasingly looking to diversify their allocation into cryptos."
02:23 Institutional Validation
"The biggest red flags are lack of independent auditors, no proper fund administration, and concentrated custody on a single exchange. We saw that with FTX—if one exchange goes bust, the asset manager goes bust too."
03:52 Due Diligence Red Flags
"In this difficult market environment, market neutral is the best strategy—generating stable absolute returns of 10% a year without directional exposure through arbitrage, futures spreads, or DeFi liquidity provision."
05:06 Market Neutral Strategies
"For a traditional diversified participation strategy, we've hedged our positions to reduce long exposure to only 30% of the portfolio instead of 100%, which reduces downside and volatility."
06:26 Portfolio Hedging Approach
"DeFi protocols are trading at five or six times earnings—three times cheaper than US equities. There is deep value in the market, and once this correction phase is done, we're headed towards major recovery and expansion."
07:17 Deep Value Opportunity in 2026
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