In this episode I chat with David Fauchier of Nickel Digital Asset Management. At Nickel, David manages the Factors Fund, a multi-strategy, multi-manager fund for cryptocurrencies. We leave the philosophical discussions about crypto aside to dive into the features of this universe that make it rife with opportunity. What struck me most about this conversation was not just how much crypto markets have evolved in the past several years, but how fragmented they still remain. Different exchange rules, regulatory regimes, margining rules, derivative contract definitions, and even order book models represent both risk and opportunity. And in exploring these idea, David helps me better understand why traditional high-frequency funds like Citadel, Jump, or Jane Street don’t simply come in and eat everyone’s lunch. In the latter part of the conversation, we pivot to David’s role as a manager-of-managers, and explore issues such as exchange and custody risk, due diligence, and the types of questions an allocator should be asking. Finally, David leaves us with a teaser about the new opportunities emerging in the DeFi space. But we’ll have to save that for another conversation. Please enjoy my conversation with David Fauchier.