ARIANE Capital co-founder Benjamin GUEZ talks crypto wealth management

abdelaziz Fathi

2021 had definitely been an eventful one for cryptocurrency arbitrage funds aiming to capitalise on price inefficiency and volatility within the digital asset markets.

Reflecting on this fact, Benjamin Guez, co-founder of ARIANE CAPITAL, a multi-family office specialized in wealth management, recalls how investors were initially cautious on what they saw as the speculative, volatile nature of cryptocurrencies.

In an interview with Crypto Daily, Guez explains how fortunate Ariane Capital was to believe in crypto investment potential and develop a native crypto prospect from the beginning.

To understand how they set it up, it’s important to understand the origin of this one-stop-shop for high net worth individuals. In fact, ARIANE is one of the very few European asset managers whose expertise in cryptocurrencies dates back to 2014, which was supplemented by its regular multi-family office activities.

Guez further noted that it took a few years for them to secure a dedicated bank account and create liquidity for their clients. However, this allowed Ariane Capital to capitalise early on the momentum and to be ahead of and in sync with the whole crypto universe.

“We can draw a parallel line between the world of finance and this universe of cryptocurrencies, but the codes and the mentality remain very particular,” said Guez.

Ariane Capital’s flagship ARBA FUND has built an impressive track record with its market neutral, arbitrage-based approach to cryptocurrency trading. Using an algorithm-based trading model that fuses elements of statistical arbitrage, the fund reported a monthly return of +0.12% in May 2021. This compares with the broad crypto market that experienced losses of more than 50% during the same period.

For comparison, ARBA FUND yielded +41.75% in 2020. But for 2021, they expect to finish the year closer to +15%, mainly due to the shrinking of arbitrage gaps and opportunities.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

ARIANE launches a new fund

Crypto adoption still faces hazards, such as the history of scams, the lack of awareness among mainstream audiences, and even a belief that regulators will ultimately kill the crypto hype. But Guez believes that mainstream adoption is coming with the right high-quality investment vehicles.

With these challenges in mind, they decided that the smart thing to do was to build a new fund that focuses on a bit of a different risk-reward profile.

To make sure that the company stays on the right side, as it did seven years ago, they launched ARBA SPIN, a certificate actively managed by the company’s management team. With a long-term directional objective mixing fundamental analysis of the crypto universe and the ability to seize opportunities identified within, ARBA SPIN certificate yielded +12.5% in a bear market.

ARBA co-founder attributes this solid performance to “the alpha generator qualities” of the management team, who have the internal capability to assess, structure, identify and invest in significant opportunities. They also apply a risk management methodology with existing market tools such as options or futures as the company is doubling down on investments at the intersection of cryptocurrency.

“Right now, many of our peers are jumping into the cryptocurrency world, which I think is beneficial for the industry as a whole. However, it’s worth noting that it’s a challenging world and landscape to explore: if you don’t have a strong team with years of legitimacy, it’s easy to make discerning mistakes,” Guez added.

Read this next

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

Digital Assets

Thailand closer to launch digital asset exchange “to serve the needs of younger generations”

TDX is a subsidiary of the Stock Exchange of Thailand (SET) and its incorporation is part of the group’s strategic position to connect capital markets, open opportunities for the business sector in raising funds and cater to investment demand of new generations.

Digital Assets

Russia to legalize cryptocurrency payments as sanctions bite

Russia could soon be the latest country to lay down ground rules for legalizing cryptocurrencies as a means of payment, a sign that governments around the world are realizing that digital assets are here to stay.

Institutional FX

XTX Markets UK reports lackluster results for 2021

The UK business of XTX Markets, a non-bank FX liquidity provider and market maker, has reported its financials for the fiscal year ending December 31, 2021. The report showed impressive metrics after seeing revenues and customer activity increase even as the pandemic trading boom fizzled out.

Digital Assets

Binance in talks with BaFin to get license in Germany

Changpeng Zhao (CZ), founder and CEO of Binance has confirmed that they are in talks with Germany’s regulators to secure a local crypto license.

<