A few insights into crypto risk

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

In this paper, Satyam Kancharla, executive vice-president and chief product officer of Numerix’s Client Solutions Group, makes two key points about crypto-related risks that are important for 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.