A Few Insights into Crypto Risk

In 2021, the value of the crypto market exceeded $2 trillion. The market was booming. But then in May of 2022, there was a widespread crash in cryptocurrency prices—and prices have been falling since (as of July 2022).

In this paper, Numerix’s Satyam Kancharla, Executive Vice President and Chief Product Officer, Client Solutions Group, makes two key points about crypto-related risks that are important for both current institutional participants or those just beginning their crypto journey to be aware of and understand:

• The lesser known risks that may not be taken into consideration by institutional investors.
• Modelling risk in a portfolio with crypto derivatives.