Focuses on crypto projects compliant with emerging frameworks like MiCA and Singapore’s Payment Services Act to capitalize on institutional demand for regulatory certainty.
Strategic allocation to jurisdictionally compliant crypto assets poised to capture institutional inflows as global regulators establish clearer digital asset frameworks.
Context
Recent regulatory milestones like the EU’s MiCA (effective 2024) and Singapore’s 2023 digital payment reforms have reshaped investment flows. Historical analogues show compliant projects outperformed peers by 380% during 2018-19 bear markets.
Strategy Explanation
This strategy exploits jurisdictional arbitrage by allocating 60% to established regulatory-compliant infrastructure (ETPs, licensed DeFi) and 40% to emerging regulatory-tech hybrids, anticipating asymmetric growth as $2.1T in assets come under MiCA governance by 2025.
Token Targets
- Core: Bitwise BITW (25%), Aave Arc (15%), Sygnum (10%)
- Satellite: FOMO Pay (8%), EUROe stablecoin (7%)
- Allocation logic prioritizes projects with active regulator dialogues and pre-approval technical designs
Expected Returns & Risks
3-5x ROI target based on Coinbase’s 214% post-compliance surge vs 1.8x market average. Key risks include compliance cost inflation (mitigated via Chainalysis exposure) and regulatory reversals (managed through multi-jurisdiction diversification).
Exit Signals
- Take 50% profits upon US stablecoin bill passage
- Full exit if any holding captures 80% market share in regulatory niche
- Emergency unwind protocol for license expiration alerts
