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.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

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X / Twitter: @dweisburd (David Weisburd)

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LinkedIn: CrossLayer Capital: https://www.linkedin.com/company/crosslayer-capital/ Drew Myers: https://www.linkedin.com/in/drew-myers-8764aa22/ David Weisburd: https://www.linkedin.com/in/dweisburd/

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Links: CrossLayer Capital: https://www.crosslayercap.com/

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Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at david@10xcapital.com

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TIMESTAMPS:

(0:00) Episode Preview (2:01) Investment strategy: emerging vs. established managers and fund structures (4:20) Identifying alpha in venture and liquid crypto investments, comparison to biotech (6:12) Diligence and alignment in GP-LP relationships; lessons from Makena Capital (10:37) Approach to VC China strategy and parallels in crypto; early market mistakes (16:01) Divergent interests between GPs and LPs; systematic frameworks and investment theses (18:27) Portfolio construction and diversity with idiosyncratic bets (22:12) Pre-seed investments and their impact on return profiles (24:11) Managing risk in volatile markets and differentiating managers (27:26) Persistence of top quartile returns and market cycle impacts (29:30) Advice for institutional LPs entering crypto; regrets and lessons at Crosslayer (33:33) Closing remarks