E97: How Institutional Investors Access Crypto

Drew Myers, Co-Founder and Managing Partner at CrossLayer Capital sits down with David Weisburd to discuss the key to small funds thriving in pre-seed investing, how time diversification tame crypto volatility, and identifying persistent top quartile crypto funds. (0:00) Introduction to Drew Myers and Crosslayer Capital; Identifying top firms in China (1:30) The rarity and strategy of crypto fund of funds (2:45) Differences between closed and open-ended funds in crypto; Early stage crypto investment comparisons (6:12) Diligence, alignment, and lessons learned in the crypto space (10:15) VC judgment, value add services, and mapping the crypto venture market (13:35) Early mistakes in crypto investments and corrections (15:28) Sponsor: Message and call to action (16:01) GP/LP interests and alignment; Investment frameworks and systematic approaches (18:27) Portfolio construction and the role of established managers in a fund (20:54) Top quartile comparison in crypto vs. venture capital; Pre-seed deals significance (24:11) Managing risk and volatility in crypto; Time diversification strategies (25:37) Differentiating between articulate managers and sophisticated investors (27:26) Persistence of returns and signs of potential depreciation in fund performance (30:41) Advice for institutional LPs entering crypto; Reflections and regrets from Crosslayer's early years (33:33) Closing remarks and subscription reminder