Expert Tips for Choosing a Crypto Asset Manager

Expert Tips for Choosing Your Crypto Asset Manager in the On-Chain Era

The world of digital assets is dynamic and complex. For high-net-worth individuals, crypto project founders, and DAO treasury managers, navigating this landscape to preserve and grow capital requires specialized expertise. Choosing the right crypto asset manager is not just a preference; it's a critical strategic decision. As the financial world increasingly moves on-chain, the criteria for selecting a manager evolve. This guide offers expert tips to help you identify a partner who can truly navigate the intricacies of onchain asset management and deliver results.

Key Characteristics of a Top-Tier Crypto Asset Manager:

Your ideal crypto fund or onchain portfolio manager should embody several core characteristics. Let's break them down:

1. Radical Transparency: The On-Chain Imperative : In an ecosystem built on the promise of decentralization, transparency isn't just a buzzword—it's a fundamental requirement. A competent onchain asset manager should operate with the highest degree of openness.

• • Why it matters for you (DAOs, Founders, HNWIs): You need to verify how your assets are being managed, what strategies are deployed, and how fees are structured, all in real-time. This is especially crucial for DAO treasuries that are accountable to their communities. 
  • The Bgroup.finance Approach: At bgroup.finance, we leverage robust onchain asset management infrastructure like Enzyme Finance. 3 This means our activities, from portfolio composition to transaction execution within our funds (B100, BBTC, BGC), are recorded on the blockchain, offering an unparalleled level of transparency. 5 Every investor can, in principle, verify these operations, fostering a level of trust that traditional finance often struggles to match.
    

2. Verifiable On-Chain Track Record: Proof is in the immutable_ledger : Past performance is not always indicative of future results, but a consistent, verifiable track record is a strong indicator of a manager's skill and strategic acumen. In the on-chain world, this track record should be immutable and auditable.

• • Why it matters for you: You need assurance that the manager has successfully navigated various market cycles and can demonstrate their expertise through tangible, on-chain results, not just presentations.
  • The Bgroup.finance Approach: We pride ourselves on our multi-year history of managing assets directly on the blockchain. 3 Our funds, like the B100 aiming to outperform the top 100 coins or the BBTC focused on outperforming Bitcoin with managed risk 3, have their performance inherently recorded on-chain, providing a transparent history of our strategic execution.
    
    

3.Deep Expertise in Crypto, DeFi, and On-Chain Mechanics : The digital asset space is more than just buying and selling cryptocurrencies. A proficient crypto asset manager must possess a profound understanding of DeFi protocols, smart contract interactions, tokenomics, and the nuances of various blockchain ecosystems.

• • Why it matters for you: Whether you're a DAO looking to deploy treasury into yield-generating DeFi strategies , a project founder managing runway, or an HNWI seeking sophisticated exposure, your manager needs to identify genuine opportunities and sidestep hidden risks within the complex DeFi landscape. 
  • The Bgroup.finance Approach: Our team is composed of crypto asset management experts who live and breathe the on-chain world. 4 Our strategies, such as the "Volatility Harvesting" employed in our BBTC and BGC funds 3, are born from a deep understanding of market dynamics and DeFi mechanisms.
    
    

4.Robust Security Framework & Infrastructure : Security is non-negotiable. Your chosen manager must demonstrate an unwavering commitment to safeguarding your assets, leveraging best-in-class security practices and infrastructure.

• • Why it matters for you: The on-chain world, while transparent, has its own set of security challenges. You need a manager who prioritizes the safety of your capital above all else.
  • The Bgroup.finance Approach: By utilizing established and audited platforms like Enzyme Finance 11, we benefit from their rigorous security protocols, including smart contract audits and non-custodial vault architecture where appropriate. 13 This allows us to focus on strategy while relying on battle-tested security for fund operations.
    
    

5.Alignment with Your Specific Needs (Especially for DAOs & Bespoke Solutions) : A one-size-fits-all approach rarely works in sophisticated asset management. This is particularly true for DAOs with unique treasury mandates or individuals requiring tailored strategies.

• • Why it matters for you: DAO treasuries often require diversification from native tokens, sustainable yield for operations, and strategies that align with community governance. 7 HNWIs might need bespoke portfolios that reflect specific risk appetites or ethical considerations.
  • The Bgroup.finance Approach: While our current public funds (B100, BGC) cater to specific risk profiles , we understand the growing need for more tailored solutions. We are equipped to discuss and structure Separately Managed Accounts (SMAs) or bespoke onchain portfolio manager services, creating dedicated on-chain vaults to implement strategies precisely aligned with the unique objectives of DAOs, project treasuries, or high-net-worth clients.
    
    

6.Proficiency with On-Chain Infrastructure & Tools: An onchain asset manager or onchain hedge fund (referring to sophisticated, actively managed on-chain strategies) must be masters of the tools they use. This means deep familiarity with platforms like Enzyme, understanding their capabilities for delegation, reporting, risk management, and compliance features.

• • Why it matters for you: The efficiency, transparency, and security of your managed assets directly depend on the manager's ability to expertly utilize the underlying on-chain infrastructure.
  • The Bgroup.finance Approach: Our core operations are built upon leading on-chain asset management platforms. 4 This allows us to offer features like automated reporting, programmable risk controls, and transparent fee structures, all inherent to these advanced systems. 13
    
    

7.Clear Risk Management Philosophy : The crypto market is known for its volatility. A good manager will have a clearly articulated and robust framework for managing risk, tailored to the on-chain environment.

• • Why it matters for you: You need to understand how your manager approaches downside protection, liquidity management, and smart contract risks. 
  • The Bgroup.finance Approach: Our fund strategies incorporate explicit risk management techniques. For example, the BBTC fund maintains a significant Bitcoin allocation to manage altcoin risk, and both BBTC and BGC employ "Volatility Harvesting." 3 For bespoke solutions, risk parameters are a key part of the collaborative design process.
    
    

Questions to Ask Your Potential Crypto Asset Manager:

Before entrusting your assets, especially as a DAO treasury manager, project founder, or HNWI, consider asking:Transparency & Reporting: How do you ensure

1. transparency in your operations and reporting? Can I verify portfolio holdings and transactions on-chain?
2. Track Record: Can you provide a verifiable on-chain track record for your strategies or similar mandates?
3. DeFi Expertise: What is your experience with various DeFi protocols, and how do you assess their risks and opportunities for yield generation or strategic allocation?
4. Security: What security protocols and infrastructure do you utilize? How are client assets protected from smart contract vulnerabilities or other on-chain risks?
5. Customization (for SMAs/DAOs): How do you tailor strategies for specific client needs, such as DAO treasury diversification, yield targets, or individual risk profiles? Can you manage assets within a dedicated, client-specific on-chain vault?
6. Infrastructure: Which on-chain asset management platforms (e.g., Enzyme) do you use, and why? How do you leverage their specific features for your clients' benefit?
7. Risk Management: What is your detailed risk management framework for on-chain assets? How do you handle liquidity risk, protocol risk, and market volatility?
8. Fees: What is your fee structure, and how is it calculated and collected on-chain?
   
9. Regulatory Awareness: How do you stay updated on the evolving regulatory landscape for digital assets, and how does it inform your operations? 

Choosing Your Partner in the On-Chain Future

Selecting a crypto asset manager in this evolving on-chain era requires diligence and a clear understanding of what truly matters. Look for a partner who not only understands the market but also embodies the core principles of transparency, security, and verifiable expertise inherent to the blockchain itself.

At bgroup.finance, we are committed to being that trusted onchain asset manager. We combine deep crypto expertise with the power of leading on-chain infrastructure to offer transparent, secure, and effective management solutions for sophisticated investors, DAOs, and crypto projects.

Ready to explore how expert on-chain asset management can benefit your portfolio or treasury? Contact bgroup.finance today to discuss your specific needs.