Why Liquid Funds Have An Edge over VCs

Today's episode with Zaheer from Split Capital, we dive into the nuanced strategies of running a liquid fund in this ever-evolving crypto market.

With the introduction of Bitcoin ETFs and institutional investors gaining more influence, the market's dynamics have become more complex and less predictable. Zaheer walks us through how Split Capital adapts to shifts in market conditions and why understanding the current landscape is crucial for anyone serious about crypto investing. We explore his investment style, which emphasizes flexibility and a regime-agnostic approach, and what Zaheer’s take on credit expansion, which he cites as a critical factor limiting crypto asset growth. We also discuss DeFi’s trajectory from 2020’s lofty ambitions to a more mature, regulatory-focused application, and why creating robust monetary systems remains the most compelling use case in crypto.

Zaheer doesn't sugarcoat the reality for retail traders in this space, especially as the market becomes more professional and dominated by institutions. For those interested in the bigger picture, he outlines why Ethereum's so-called "identity crisis" isn’t as catastrophic as some might think and how human coordination could ultimately triumph over infighting and dogma.

This conversation is packed with insights into the current market cycle, the role of credit, and the importance of building a strategy based on conviction rather than hype. Enjoy!

The Rollup