LOOPING TO ZERO: WHAT'S ABOUT TO HAPPEN

Summary from the TLDR Crypto newsletter

Crypto is repeating the 1980s-90s hedge fund era when blowups like LTCM led to the creation of funds of funds as a middle layer for allocation and risk management. Vaults now require the same onchain infrastructure that traditional finance developed after massive failures. Onchain funds of funds would handle full risk management systems tracking positions across vaults, quantitative risk checks, manager due diligence, protocol-level fundamental research, and dynamic rebalancing to maintain concentration limits and risk-adjusted returns. Crypto users lack the expertise to properly size vault positions or track underlying risks, creating demand for professional fund-of-funds services that will reach billions in AUM as the winners filter for best strategies and publish public research to justify allocations.