Q&A: Jeff Zhao, Co-Founder and Chief Operating Officer of Asian digital asset management firm darwinbit

December 22, 2023

1.What are recent developments or events within the Ethereum ecosystem that may be influencing this surge?

The surge in ETH can likely be attributed to a filing made by BlackRock Advisors, reportedly registering an iShares Ethereum Trust. The market has responded positively to this news, causing a spike in Ethereum’s price, although trading volumes and volatilities have somewhat returned to the usual. BlackRock’s increasing involvement in the crypto market suggests a growing acceptance and interest that could attract more mainstream adoption and investment. 

BlackRock’s initiative in the cryptocurrency markets is not without precedent; the company has been actively developing a Bitcoin ETF, and its CEO, Larry Fink, has publicly transitioned from a position of doubt to becoming an advocate for cryptocurrencies. The upcoming Ethereum ETF, with Coinbase slated as its custodian, is strategically designed to tackle SEC concerns by utilizing surveillance mechanisms similar to those employed in Ethereum futures ETFs. This will likely play a big part in building trust and confidence in crypto from established financial institutions.

2.How have the opportunities for investors in crypto structured products been influenced by the rise in Ethereum’s price?

With Ethereum’s price on an uptrend, a growing number of investors and institutions are looking to add digital assets to their portfolios. Due to this, crypto structured products have been at the forefront of this development as they provide investors with the advantage of having exposure while limiting the potential risks. This is especially important considering the cryptocurrency market typically has a heightened volatility in comparison with traditional financial instruments. 

Not only that, crypto structured products also allow an even wider range of investors to enter the digital asset market, as these products can be customized according to the investor’s profile and risk appetite. 

3.What investment strategies or portfolio adjustments can be employed to optimize returns in response to evolving market conditions?

As the world of cryptocurrency continues to evolve, there is one particular financial instrument that is gaining traction — crypto structured products. They are designed to facilitate specific payoff characteristics that can accommodate different risk-reward profiles. They offer a range of investment outcomes through the combination of various financial derivatives. This flexibility allows investors to potentially profit from practically any market condition, making them a vital tool in a discerning investor’s arsenal.
In periods of bullish sentiments, like the present, the ‘pumping’ of cryptocurrency prices can be an exhilarating experience. To fully capitalize on upward price trends, darwinbit has designed a variety of crypto structured products aimed at delivering investors enhanced yield.

Bullish Snowball

The Bullish Snowball is the reliable tool in your financial toolkit. This product aligns your risk-reward preferences with higher returns, specifically crafted to boost returns when Bitcoin (BTC) prices are on an upward trajectory. Let’s say you, as an investor, anticipate a surge in BTC prices—that’s when the Bullish Snowball becomes a strategic choice. Investors can customise risk-reward combinations by tailoring their upper and lower limits of the price range. These features enable investors to leverage Snowball to manage risk exposure while earning higher potential returns, based on their market outlook. 

4.What are the emerging trends in the crypto structured products space?

We have observed a significant increase in the usage of crypto structured products to generate a passive income (also known as yield), such as crypto-earn products. This allows the end users to leverage their existing crypto assets to produce consistent or above-the-market returns across a diverse range of market conditions. 

Our classic offerings, such as Shark Fin, Dual Investment, and Snowball, serve as excellent examples for investors seeking to surpass market-average profits passively while aligning with their personal market perspectives and risk appetite. 

5.Do you think structured products will be used more frequently in cryptocurrency markets in the future? What are your predictions on the topic?

We think structured products will be used more often in the cryptocurrency markets in the future. One of the most appealing aspects of crypto-structured products is their ability to diversify investment portfolios. On the other hand, crypto structured products open up a whole new world of possibilities as they not only provide a passage for retail investors and institutions to gain access to new markets, it’s also highly flexible, which allows the participation of an extensive range of market participants. As it stands, crypto structured products are paving the way for broader portfolio diversification and potentially higher returns.

We aim to maximize the returns of investors, while at the same time ensuring balance with sound risk management in volatile markets. I anticipate that structured products will have a more significant presence in the cryptocurrency markets as long as we continue our efforts to make cryptocurrency investments safe, secure, and accessible for everyone.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.