According to the interviewee, digital assets like bitcoin (BTC) provide a superior risk-reward ratio, exceeding three times that of the S&P 500, making them a strong standalone asset class for portfolio diversification. Public blockchains ensure real-time transparency and trustlessness, reducing counterparty risks, while DeFi innovations eliminate intermediaries like banks, improving capital efficiencies. Infrastructure enhancements such as MPC technology and multi-sig wallets have bolstered security and usability. Obstacles include recency bias from events like FTX's collapse and confirmation bias, but traditional finance faces similar counterparty risks as seen with institutions like JP Morgan. For alpha generation in volatile markets, strategies include dollar cost averaging on assets like ETH, setting specific trading plans, and trend investing based on adoption curves, monthly data points, and technological progression. A mentioned institutional fund utilizes quantitative signals for crypto investments (source: interview).

According to a Hyperion Decimus executive, digital assets like Bitcoin (BTC) and Ethereum (ETH) provide a superior risk-reward ratio, with BTC outperforming the S&P 500 by more than three to one, offering quantitative diversity for portfolio allocation. The executive highlighted blockchain transparency and DeFi efficiencies that eliminate intermediaries, alongside infrastructure improvements such as MPC technology enhancing security. Obstacles include recency bias from past exchange failures and lack of awareness about fractional reserve banking risks. For alpha generation, strategies involve dollar-cost averaging on assets like ETH, setting price-based trading plans, and trend investing based on adoption curves and tech progression.