In this episode, Moritz Seibert speaks with Anatoly Crachilov and Michaell Hall from Nickel Digital, a prominent London-based crypto hedge fund. Anatoly (CEO) and Michael (CIO) founded the company in 2019 with an initial focus on in-house arbitrage and basis trading strategies. Over the years, their business model has evolved and adapted to the fast-changing world of digital assets. Today, Nickel Digital operates as a multi-strategy, multi-manager setup with more than $250 million in AUM, making it one of the largest and longest-standing crypto hedge funds globally. 

Anatoly, Michael and Moritz speak about the opportunities and challenges of operating a multi-PM digital asset hedge fund, how they differ from traditional asset hedge fund pod shops, and how the attract and find new PMs to work with them.

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to [email protected]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Moritz on Linkedin.

Follow Michael on LinkedIn.

Follow Anatoly on LinkedIn.

Episode TimeStamps:

02:13 - Introduction to Nickel Digital and how they found their way to crypto

08:10 - A trip down memory crypto lane

12:25 - Why is the basis still so wide on crypto?

15:07 - The state of alpha in the crypto space

18:23 - What kind of portfolio does Nickel Digital run?

19:56 - How they take advantage of automation to carry out a 24/7 365 trading strategy

22:24 - How they manage the managers

25:22 - How they approach netting cost

27:40 - Their process for paying managers

30:59 - Their manager onboarding process

38:41 - Why traders make more money at Nickel Digital than anywhere else

40:52 - What is the average sharpe ratio in the crypto space?

43:19 - The tech backbone - how Nickel Digital is connected to exchanges

46:08 - FTX collapse - The most stressful period for their business

49:46 - How they manage price and risk in 24 hours/day markets

54:06 - How crypto differ from regular markets

57:09 - The pitfalls of trading crypto

01:02:35 - What is their long term vision for Nickel Digital?

Copyright © 2024 – CMC AG – All Rights Reserved

----

PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Privacy Policy

Disclaimer