Alizeh Ali Angel
--
Crypto Funds Reassess Strategy Tools After 2025 Turbulence—Lorenzo Emerges a Top Choice
@Lorenzo Protocol The hard lesson of 2025 wasn’t simply that prices fell. It was how quickly the market’s “rules” seemed to change. Bitcoin could look like a momentum asset in the morning, a macro hedge by lunch, and a high-beta tech proxy by the close. When headlines about rates or trade policy landed, crypto didn’t just react; it sometimes overreacted, then snapped back. The pace left even careful teams feeling briefly unsure of their own map. One uncomfortable theme was how linked crypto felt to broader markets, with selloffs arriving alongside the same macro shocks that hit equities and rates, plus the extra stress of leverage unwind and cascading liquidations.
Flows reinforced the mood. CoinShares reported four consecutive weeks of outflows by late November, totaling about $4.92 billion, one of the largest outflow runs since 2018. But the story wasn’t a one-way exit. In early December, CoinShares also pointed to a return of weekly inflows and a rebound in assets under management to roughly $180 billion, still well below a prior peak near $264 billion. That whiplash—money leaving, then money coming back—forces funds to ask hard questions about how resilient their operations really are.
In calm periods, plenty of crypto funds can live with a patchwork. A few exchange dashboards for execution, a homegrown risk sheet, a mix of scripts and habits that mostly work because the market isn’t testing them. Turbulence exposes the gaps. Suddenly you care about whether you can see concentration risk in real time, how “diversifiers” behave when correlations jump, and how quickly you can de-risk without turning a controlled exit into a messy liquidation. You also care about something more human: how you explain a bad week without hiding behind jargon, and whether your investors believe you when you say you’re in control.
That’s why “strategy tools” are trending now. It’s less about finding a new edge and more about making an edge repeatable. In my view, this is the most encouraging evolution coming out of a bruising year. Crypto managers are borrowing habits that traditional asset management has treated as normal for decades—clear risk limits, cleaner reporting, more deliberate portfolio construction—while also leaning into what crypto can do uniquely well: make positions, flows, and rules more visible and more programmable.
Lorenzo has benefited from that shift in priorities. It positions itself as an on-chain asset management platform that packages strategies into tokenized products, including what it calls On-Chain Traded Funds, which are essentially fund-like exposures represented on-chain. If that sounds abstract, the underlying desire is simple. Managers and investors want structure. They want a defined mandate, clearer accounting, and a way to separate “the strategy” from the improvisation that tends to creep in when markets get chaotic.
The appeal isn’t that tokenization magically improves returns. It’s that it can make the operating model cleaner. A token that represents a strategy can be easier to track, easier to transfer, and easier to integrate into a broader system of reporting and controls. There’s also a subtle psychological benefit: it nudges the conversation toward “what do I own and how is it run?” rather than “what story is hot this month?” After 2025, a lot of allocators sound less interested in stories, and more interested in whether a product behaves the way it claims under stress.
Lorenzo’s framing leans into that seriousness. Its public materials emphasize “institutional-grade” on-chain asset management and a platform model rather than a single trade idea. That language can be overused in crypto, but the demand underneath it is real. If your investors are watching headlines that can trigger sudden selloffs, they want confidence that your process won’t collapse into manual panic. A product wrapper alone won’t earn that trust, but a better wrapper can make good process easier to show, and bad process harder to hide.
Still, it’s worth slowing down before treating any platform as a cure. Tokenizing a strategy doesn’t erase market risk, and it introduces its own hazards: smart-contract vulnerabilities, governance disputes, liquidity mismatches between a token and the underlying positions, and the ugly scenario where everyone wants out at once. A wrapper can standardize access; it can’t make a fragile strategy sturdy. The work still lives in risk discipline, liquidity planning, and honest communication—especially when the “right” decision is emotionally unpleasant, like cutting exposure early and watching the market bounce without you.
So why does Lorenzo keep popping up as a top choice in this moment? Because the bar has moved. After a year of turbulence, the question isn’t only “can you generate returns?” It’s “can you run the machine when the room gets loud?” Tools that help define mandates, package strategies, and make exposure easier to understand are suddenly not a side project. They’re part of what investors are buying, even if they don’t call it that.
I don’t expect a single winner. Some funds will keep most infrastructure in-house, others will lean on prime brokers and traditional systems, and many will mix approaches. But the direction feels set: crypto funds are treating process as part of performance. Platforms like Lorenzo are gaining mindshare not because they promise magic, but because 2025 forced a more sober instinct into the open—if you want to manage serious capital, you need serious plumbing.
@Lorenzo Protocol #lorenzoprotocol $BANK #LorenzoProtocol
Flows reinforced the mood. CoinShares reported four consecutive weeks of outflows by late November, totaling about $4.92 billion, one of the largest outflow runs since 2018. But the story wasn’t a one-way exit. In early December, CoinShares also pointed to a return of weekly inflows and a rebound in assets under management to roughly $180 billion, still well below a prior peak near $264 billion. That whiplash—money leaving, then money coming back—forces funds to ask hard questions about how resilient their operations really are.
In calm periods, plenty of crypto funds can live with a patchwork. A few exchange dashboards for execution, a homegrown risk sheet, a mix of scripts and habits that mostly work because the market isn’t testing them. Turbulence exposes the gaps. Suddenly you care about whether you can see concentration risk in real time, how “diversifiers” behave when correlations jump, and how quickly you can de-risk without turning a controlled exit into a messy liquidation. You also care about something more human: how you explain a bad week without hiding behind jargon, and whether your investors believe you when you say you’re in control.
That’s why “strategy tools” are trending now. It’s less about finding a new edge and more about making an edge repeatable. In my view, this is the most encouraging evolution coming out of a bruising year. Crypto managers are borrowing habits that traditional asset management has treated as normal for decades—clear risk limits, cleaner reporting, more deliberate portfolio construction—while also leaning into what crypto can do uniquely well: make positions, flows, and rules more visible and more programmable.
Lorenzo has benefited from that shift in priorities. It positions itself as an on-chain asset management platform that packages strategies into tokenized products, including what it calls On-Chain Traded Funds, which are essentially fund-like exposures represented on-chain. If that sounds abstract, the underlying desire is simple. Managers and investors want structure. They want a defined mandate, clearer accounting, and a way to separate “the strategy” from the improvisation that tends to creep in when markets get chaotic.
The appeal isn’t that tokenization magically improves returns. It’s that it can make the operating model cleaner. A token that represents a strategy can be easier to track, easier to transfer, and easier to integrate into a broader system of reporting and controls. There’s also a subtle psychological benefit: it nudges the conversation toward “what do I own and how is it run?” rather than “what story is hot this month?” After 2025, a lot of allocators sound less interested in stories, and more interested in whether a product behaves the way it claims under stress.
Lorenzo’s framing leans into that seriousness. Its public materials emphasize “institutional-grade” on-chain asset management and a platform model rather than a single trade idea. That language can be overused in crypto, but the demand underneath it is real. If your investors are watching headlines that can trigger sudden selloffs, they want confidence that your process won’t collapse into manual panic. A product wrapper alone won’t earn that trust, but a better wrapper can make good process easier to show, and bad process harder to hide.
Still, it’s worth slowing down before treating any platform as a cure. Tokenizing a strategy doesn’t erase market risk, and it introduces its own hazards: smart-contract vulnerabilities, governance disputes, liquidity mismatches between a token and the underlying positions, and the ugly scenario where everyone wants out at once. A wrapper can standardize access; it can’t make a fragile strategy sturdy. The work still lives in risk discipline, liquidity planning, and honest communication—especially when the “right” decision is emotionally unpleasant, like cutting exposure early and watching the market bounce without you.
So why does Lorenzo keep popping up as a top choice in this moment? Because the bar has moved. After a year of turbulence, the question isn’t only “can you generate returns?” It’s “can you run the machine when the room gets loud?” Tools that help define mandates, package strategies, and make exposure easier to understand are suddenly not a side project. They’re part of what investors are buying, even if they don’t call it that.
I don’t expect a single winner. Some funds will keep most infrastructure in-house, others will lean on prime brokers and traditional systems, and many will mix approaches. But the direction feels set: crypto funds are treating process as part of performance. Platforms like Lorenzo are gaining mindshare not because they promise magic, but because 2025 forced a more sober instinct into the open—if you want to manage serious capital, you need serious plumbing.
@Lorenzo Protocol #lorenzoprotocol $BANK #LorenzoProtocol
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.