Remembering the initial period of trading in cryptocurrency, Dan Matuszewski reminisces that at that time it was not fear about market volatility, but fear that the entire crypto business might just disappear from the market. Former Cumberland and Circle executives set up CMS Holdings for Crypto Prop Trading.
In a telephone interview, 31-year old Matuszewski stated: “There was always a non-zero chance that bitcoin would gap down, die, and never come back,”
Matuszewski formerly managed the cryptocurrency-oriented financial company Circle. He now feels the market is secure enough, so much so that he’s joining together with two colleagues to pool more than $10 million to create a business venture. Matuszewski is partnering with Bobby Cho, a former brokerage firm DRW Cumberland’s trading head, along with a former technology executive from Circle, Julien Collard-Seguin.
Bobby Cho stated that their new venture is called CMS Holdings and it started its trading activities in the month of October. CMS Holdings is registered in the Cayman Islands and does not indulge in managing capital from outside investors. Moreover, CMS Holdings utilizes the approach that is similar to a hedge fund with the only difference that they are still to structure it.
The company’s strategy and intention to invest 30% of their company’s capital in highly liquid cryptocurrencies such as Bitcoin and Ethereum, and on the other hand investing around 40% to 50% in other tokens and digital assets, which are not being traded on a regular basis, was also shared by Cho. Moreover, he also mentioned that the remaining capital would be utilized for equity investment in the crypto ecosystem, while talking about the quick evolution of the crypto ecosystem, which does not seem to stop.
Bitcoin is still way behind the price of $20,000 that it achieved in the year 2017, however, it has more than doubled its price in the current year rallying to around $8,700 per coin.
Matuszewski concluded that currently it is much safer and very unlikely to disappear from the market.