Overview

Satori Digital Asset Management, a crypto-native hedge fund chose Aplo as a new provider to solve trading and custodial challenges, particularly for tokens from the top 200 and beyond. Aplo’s access to multiple liquidity sources and advanced custodial services enhanced the fund’s trading efficiency, provided secure custody for complex assets, and optimized portfolio management and rebalancing.

Satori Digital

Founded in 2022 by Flurin Domenig and Suren Nannapaneni, the crypto-native hedge fund is an open-ended fund. Their portfolio is strategically allocated between cash (including stablecoins and treasuries), mid-cap tokens such as Celestia and other smaller-cap coins within the top 200 and outside, and large cap cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
The hedge fund adopts a Buy and Hold Strategy with a macro overlay. Their investment focus includes blockchain ecosystems, including non-EVM tokens. These tokens often present challenges due to their scarce liquidity and custodial complexities.

The Challenge

The hedge fund faced several significant issues that hindered their trading efficiency and portfolio management including:

1. Liquidity source for Top 200 Tokens: Many of the tokens in the fund’s portfolio, particularly smaller cap tokens, face low liquidity, making them difficult to source and trade efficiently. In fact, some of these tokens were only available on DEXs (Decentralized Exchanges).
2. Custody solution for non-EVM ecosystems: Tokens from these ecosystems, such as Cosmos, present significant custodial difficulties.
3. RFQ Trading Module Limitations: Prior to engaging with Aplo, the hedge fund was constrained by a provider’s RFQ trading module with a minimum trading size, limiting the fund’s ability to trade smaller ticket sizes.
   
   

Why They Chose Aplo

In search of a solution that would address these pain points, Satori Digital turned to Aplo as a new liquidity provider. Aplo distinguished itself for several compelling reasons:

1. Access to multiple liquidity sources: Aplo’s extensive access to 10+ liquidity sources was crucial for the hedge fund to access a wider selection of assets. This access allowed them to find liquidity through a regulated entity (Aplo is registered by the AMF as a CASP) on assets they could previously only find on DEXs.
2. No minimum position size: Aplo’s RFQ system provides the fund with enhanced control over order sizing, eliminating the constraints of minimum trading sizes.
   

Results

The collaboration between Satori Digital and Aplo has yielded significant results, enhancing the hedge fund's operational capabilities and overall performance:

• Improved Trading Efficiency: Aplo's access to 10+ liquidity sources has streamlined the process of sourcing and trading tokens, particularly smaller-cap tokens, thereby enhancing trading efficiency.
• Secure Custody: Aplo’s advanced custodial services have provided secure custody solutions for complex assets, including non-EVM tokens, addressing a critical challenge faced by the hedge fund.
• Optimized Portfolio Management: The ability to trade smaller ticket sizes without minimum constraints has enabled more precise portfolio management and rebalancing, contributing to a more strategically aligned investment portfolio.
• Broader Asset Selection: The partnership has expanded the range of accessible assets for Satori Digital by 50%, including those that were previously only available on DEXs, enhancing the fund’s investment opportunities.
  

The strategic partnership between Aplo and Satori Digital, has significantly enhanced Satori Digital Asset Management's trading efficiency, custodial security, and portfolio management capabilities, positioning the hedge fund for continued success in the rapidly evolving cryptocurrency landscape.

Flurin Domenig, Partner at Satori Digital, emphasized: “The main benefit we get from Aplo is the broader asset selection available to us compared to some of our other brokers. Additionally, their RFQ system provides greater control over order sizing."

Contact us at Contact@aplo.io if you want to learn more about Aplo’s solutions.