Strategy Spotlight

Why a systematic digital asset strategy

An explanation of a systematic, rules-based long/short strategy in the most liquid digital assets, implemented through CFDs — how it works, why professional investors consider systematic exposure, and its specific risks. For information only; not an offer or solicitation. CFDs are leveraged and carry significant risk.

2 July 20268 min read

Key takeaways

This strategy applies systematic, rules-based models to the most liquid digital assets, seeking opportunities in both rising and falling markets through long/short positioning.
It is implemented via CFDs — leveraged derivatives — and does not involve direct ownership of any digital asset.
AI and machine learning support signal development and validation within a defined risk and governance framework, with human oversight — never as a performance guarantee.
Professional investors consider systematic approaches for consistency, discipline and the removal of day-to-day emotional bias.
CFDs are leveraged and carry significant risk, including losses that may exceed the initial margin; this note is educational only.

What this strategy is

This is a systematic digital asset strategy that trades the most liquid digital assets through algorithmic long/short models. Rather than expressing a discretionary view, it follows quantitative signals and predefined rules to take long or short positions, aiming to identify opportunities across liquid markets in a disciplined, repeatable way.

Importantly, the strategy is implemented through CFDs (contracts for difference) — leveraged derivative instruments — and does not involve direct ownership of digital assets. This shapes both its flexibility and its risk profile, and is central to understanding it.

How it is built

The strategy translates research into a rules-based process that governs every position.

Systematic, rules-based execution — positioning is driven by quantitative models and predefined rules, seeking to remove discretionary bias from day-to-day decisions.
Long and short capability — long/short implementation allows the strategy to seek opportunities in both rising and falling markets, subject to risk controls.
AI and machine learning research — models are developed and validated using AI and machine learning within a defined risk and governance framework, with human oversight, not as a performance guarantee.
Predefined risk controls — position sizing, exposure limits and systematic risk-reduction rules are embedded in the model, with monitoring of leverage, drawdown and volatility.

Why professional investors consider it

The reasons below are general considerations for why an investor might find systematic exposure useful. They are observations, not a recommendation.

Consistency and discipline — a rules-based process applies the same logic every time, removing day-to-day emotional bias.
Long and short flexibility — the ability to seek opportunities in both directions, within defined risk limits.
Focus on liquidity — concentrating on the most liquid digital assets prioritises tradability and risk control.
A differentiated, rules-based return source — exposure whose drivers differ from simply holding the market.

Risk considerations

This strategy carries specific and significant risks that must be understood before it is considered.

The strategy is implemented through CFDs. CFDs are leveraged derivatives and can involve significant risk, including losses that may exceed the initial margin.
The strategy does not involve direct ownership of digital assets.
Digital assets are highly volatile, and systematic models may underperform or fail to achieve their objective.
Investors may lose part or all of their capital. Past performance is not a reliable indicator of future results.

Who it is designed for

This type of strategy is intended for professional and qualified investors who understand leveraged, derivative-based strategies and are seeking liquid, systematic exposure as part of a broader portfolio.

Any investment can only be made by eligible investors on the basis of the relevant offering documentation. This note is educational and does not constitute an offer or solicitation.

Block Asset Management

How Block Asset Management manages this strategy

This is one of the strategies we manage for professional and qualified investors. Its advantage is disciplined, rules-based execution supported by serious research — always paired with predefined risk controls and human oversight of the models.

Rules-based execution

Positioning is governed by quantitative models and predefined rules, seeking to remove discretionary bias from day-to-day decisions.

Research with governance

AI and machine learning support signal development and validation within a defined risk and governance framework, with human oversight rather than autonomy.

Predefined risk controls

Position sizing, exposure limits and systematic risk-reduction rules are embedded in the model, with continuous monitoring of leverage, drawdown and volatility.

Focus on liquid markets

Concentrating on the most liquid digital assets prioritises tradability, execution quality and risk control.

Experience and transparency

Eight years focused on digital assets inform how we build and govern our systematic research, with the transparency and controlled, auditable access institutions expect.

A systematic digital asset strategy offers a disciplined, rules-based way to seek opportunities in liquid markets — but its use of CFDs and leverage makes risk control and governance decisive. The discipline around the models matters as much as the models themselves.

Professional and qualified investors who would like to understand this type of strategy in more detail can contact our investor relations team or register for access to our strategy materials. This note is provided for information only.

Important information

This material is provided for information purposes only and is intended for professional and qualified investors. It does not constitute investment advice, nor an offer, solicitation or invitation to subscribe for or invest in any fund or strategy. The strategy is implemented through CFDs; CFDs are leveraged derivatives and can involve significant risk, including losses that may exceed the initial margin, and do not involve direct ownership of digital assets. Product names are generic strategy descriptors. Any investment can only be made by eligible investors on the basis of the relevant offering documentation. Digital assets are volatile and involve significant risk, including the possible loss of the entire amount invested. Past performance is not a reliable indicator of future results.

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