GREENWICH Conn., Nov. 11, 2021 /PRNewswire/ -- One River Digital Asset Management, along with its parent company One River Asset Management, announced today they've launched an institutional-grade Ethereum staking strategy within their existing commingled institutional Ethereum Fund.
This capability, an industry first, allows institutional investors access to the yield, paid in ether, available when committing ether to the network and contributing to network operation and security. While this is a new concept for most institutional investors, One River Digital believes that staking digital assets will quickly become a default setting for long-term investors in the asset class.
One River Digital firmly believes that Ethereum is on its way to becoming the low-risk asset in the digital ecosystem. The upcoming transition of the Ethereum network from proof-of-work to proof-of-stake is an important moment in the history of digital assets. By changing its consensus model, Ethereum will likely cut its power consumption by over 95%, while also improving overall security.
One River Digital has built a robust legal infrastructure for this strategy and paired it with the strong service configuration, technology, reporting, and tax analysis to improve institutional investor's confidence in their exposure. "One River Digital constructed the strategy through the eyes of an institutional investor, which really means a focus on technical diligence and building the right infrastructure," said Shaun Martinak, Research/Portfolio Manager at One River Digital. "This is an opportunity to earn yields denominated in ether, and to grow ownership share in one of the most important global computing networks."
"The choice of world class partners is essential for a strategy like this," said Sebastian Bea, President of One River Digital. One River Digital will be using Coinbase's Bison Trails and Gemini. "Whether in client software selection, the diversification of their computing infrastructure, or the expertise of their protocol engineering teams, staking service redundancy is essential and we will consider adding new partners to deepen operational flexibility as the product expands."
"The best way to manage risk is to pair deep investment expertise with technical know-how in staking," said Marcel Kasumovich, Head of Research. "These partnerships give One River Digital the ability to interact continuously with engineering teams focused on all technical aspects of the Ethereum network."
"In time, digital assets will enter institutional portfolios in many areas, from infrastructure to public markets. Liquid exposure to digital infrastructure is where the largest investment institutions can make a difference. We are excited to offer an early access point to this investment opportunity," said Martinak.
About One River Digital Asset Management:
One River Digital Asset Management is a leading asset manager in the emerging digital asset industry, with investment funds and bespoke strategies built to meet the unique needs of its institutional clients around the globe. The firm is a subsidiary of One River Asset Management, an innovative investment manager dedicated to delivering high-conviction absolute-return strategies that seeks to help its clients build superior portfolios. It sees the world in a period of major economic, policy and political transition, with the investment landscape shifting in ways that will make the coming decade look profoundly different from the past decade. Its strategies are built to profit from this dynamic environment while providing strong diversification benefits to traditional investment portfolios. Each is developed and managed by its diverse team of investment professionals with deep expertise in volatility, macro, inflation, digital asset and systematic trading/investing. One River manages over $2.5bln in institutional assets. The firm is headquartered in Greenwich, CT and was founded in 2013.
SOURCE One River Digital Asset Management
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