According to Perplexity, there are several crypto investment strategies being used by asset managers and crypto funds:

Diversified Crypto Portfolios 2

• Asset managers are building diversified crypto portfolios that include a mix of established cryptocurrencies like Bitcoin and Ethereum, as well as smaller, emerging coins.
• The goal is to balance the risks associated with market volatility by spreading investments across different crypto assets, sectors, and technologies.

Algorithmic/Quantitative Strategies 123

• Crypto hedge funds are increasingly using algorithmic and quantitative trading strategies to exploit pricing inefficiencies in the crypto market.
• These strategies rely on computer programs to execute trades based on predefined rules, removing human emotion from the process.
• Quant funds often focus on smaller cryptocurrencies and use various indicators to identify trading opportunities.

Node/Masternode Funds 1

• Some crypto funds are investing in “node” or “masternode” operators that are compensated for verifying transactions on blockchain networks.
• This provides a source of passive income for the funds by participating in the underlying infrastructure of certain cryptocurrencies.

Blue Chip Crypto Investing 2

• Asset managers are also focusing on investing in the “blue chip” cryptocurrencies like Bitcoin and Ethereum that have a proven track record.
• This can provide more stability compared to newer, more volatile digital assets, especially for investors new to the crypto space.

Active Trading Strategies 5

• In addition to long-term holding strategies, some crypto funds are employing active trading approaches, using technical analysis, leverage, and derivatives to try to generate outsized returns.
• This includes tactics like perpetual futures contracts offered by exchanges like FTX.

Expanding on quantitative strategies, Algorithmic/Quantitative Trading Strategies 34

Statistical Arbitrage

• Exploiting pricing inefficiencies and statistical differences in prices across multiple cryptocurrencies and exchanges.
• Holding a portfolio of thousands of different crypto assets to capitalize on volatility and price discrepancies.
• Particularly effective given the large number of altcoins and exchanges with varying prices for the same crypto.

Systematic Market Making 4

• Creating liquidity pools (smart contracts with large crypto holdings) to offer liquidity and make markets for trading.
• Using algorithms to quickly determine optimal bid/ask spreads and provide liquidity on decentralized exchanges.
• Profiting from the spread between bid and ask prices while facilitating trading.

Factor-Based Strategies 2

• Applying classic factor investing strategies like Size, Momentum, Low Volatility, Mean-Reversion to crypto portfolios.
• Constructing long-short portfolios based on factors like market cap (Size), recent returns (Momentum), volatility, and mean-reverting prices.
• While classic factors work less well, strategies like Short-term Momentum have shown promise in the crypto space.

Quantitative Strategies on Blockchain Data 2

• Analyzing on-chain data and blockchain network activity metrics to identify trading signals.
• Factors like transaction volumes, hash rates, network values can be quantified and used in systematic strategies.
• Still an emerging area as more blockchain data becomes available for analysis.

More specifically, There are:

Quantitative Strategies on Blockchain Data 1

• Asset managers are analyzing on-chain data and blockchain network activity metrics to identify trading signals and inform investment strategies.
• Factors like transaction volumes, hash rates, network values, and mining activity can be quantified and used in systematic, quantitative strategies.
• While still an emerging area, more blockchain data is becoming available for analysis as the crypto ecosystem evolves.

Node/Masternode Investing

• Some crypto funds are investing directly in “node” or “masternode” operators that are compensated for verifying transactions and supporting the infrastructure of certain blockchain networks.
• This allows the funds to earn a passive income stream from the mining/validation activities of these node operators.
• The funds are essentially capitalizing on the mining/staking rewards earned by node operators they invest in.

Tracking Fund Flows 4

• Active crypto fund managers likely monitor large inflows and outflows of funds from major crypto exchanges.
• Significant fund flows in/out of exchanges could signal upcoming price movements that active strategies can try to front-run or capitalize on.
• Analyzing the blockchain data behind large transactions and fund movements across wallets/exchanges can provide potential trading signals.

The search results highlight how asset managers are going beyond just price and market data, leveraging the transparency of blockchain technology to analyze underlying network metrics and crypto asset flows/movements to gain an investing edge through quantitative models and strategies.