Crypto funds see the market crash as a buying opportunity

Some of Australia’s biggest digital asset fund managers have brushed off concerns about the grim state of cryptocurrency markets, saying instead that the massive price drop means now is a good time to to buy.

Henrik Andersson, chief investment officer of $160 million crypto asset fund Apollo, said age and The Sydney Morning Herald his team would look to invest more capital in crypto assets in the coming days and weeks to take advantage of the depressed state of the market.

Henrik Andersson, chief investment officer at Apollo Capital, is optimistic about the future of crypto.Credit:Josh Robenstone

“If you’re a longtime supporter of crypto… now might not be a bad time to deploy capital,” he said. “That’s what we’re going to do in the days and weeks to come. We focus on blue chips and high quality names. Now is the time to invest and rebuild.

“Obviously it depends on your risk appetite, but I think everyone knows by now that crypto is very high risk. »

Since last November, the price of one bitcoin – the largest and most well-known cryptocurrency – has fallen more than 50% to be worth around $44,000, a drop that has accelerated over the past month in because of concerns about rising interest rates and inflationary pressures. shook markets everywhere.

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Within the crypto market, these wobbles have been compounded by concerns about the viability of so-called stablecoins, which are touted as pegged to the US dollar and are seen as a safe store of value away from the volatility of cryptography. This week, the third-largest stablecoin, TerraUSD, broke away from the dollar, sparking a cascade of selling actions that saw the asset drop as low as 30 US cents.

Heath Behncke, founder of asset manager Holon, said the volatility of stablecoins serves as a good lesson to new entrants on “what is stable and what is not.” Like Andersson, his digital asset fund also sees the current slide as a good time to buy.

“We’re adding to our Web3 position, there’s no doubt about that,” he said. age and The Sydney Morning Herald. “There seems to be an overreaction on the downside, so I think there will be some good opportunities that arise there. »

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