Hi, I’m Dan and new to the coop. I am currently going through the bronze owl quest and getting my feet wet. There is a lot to learn, which is exciting, and this post is mostly to get down some of my initial thoughts and to learn from all of you.
Forgive me if I ask/propose/say anything that is beating a dead horse or ridiculous and such. I do come from TradFi()and this is my first experience working within a DAO structure. I am hoping to be a big part of moving the DAO forward.
My thoughts are products that would appeal to general investors, who would use an advisor or an advisory platform, and products that would be available to advisors broadly across various platforms they use.
This could potentially broaden the customer base greatly to the type of people who have large amounts of assets to invest, prefer the services of an advisor, as well as give advisors options to further diversify portfolios and the “sexiness” of offering exposure to crypto to clients without as much volatility.
Some product thoughts from my experience as a financial advisor at one of the big houses. ETF’s are super common now for all advisors to use. I think crypto options for the general investor, who would be using a financial advisor, is scared away from the FUD in the news as well as the volatility in crypto as a whole.
Has there been any discussion on products to release that would address reducing volatility for investors?
Also, people are yield starved. Everyone knows it. Has there been discussion on creating a yield bearing crypto etf in the coop? Would a BarnBridge partnership help here?
An option from the traditional etf market that I believe would translate well to capturing TradFi etf assets with reduced vol would be something along the lines of the dividend aristocrats. I used VIG in particular. These are very popular, offering a dividend yield (~2%) with capital upside of the stocks themselves. They generally capture ~40% of the market downside and ~80% of the market upside.
Is it possible to construct a crypto version, that would offer the ability to capture the upside of the individual coins, less volatility than the overall crypto market, while also offering a yield that is fairly consistent?
I realize it wouldn’t exactly mimic an aristocrat etf, and I don’t think it should. It should still capture the essence of how crypto space works, I feel. However, I do think it would open up assets that as of now is too fearful of the space.
I’m writing this on my phone in a waiting room and haven’t grammar checked lol.