I'm not sure how it went from not scaling at the same rate, to not having scale at all. I'm pretty sure there's an appetite out there for arb strats throwing off high seven figures into eight figures, even if at that scale it's not returning triple digits on AUM. I'm leaving more on the table than I'd prefer. I don't expect that this will go on quite like this forever. That's one of the reasons that I'm less interested to grow organically/slowly, as you originally suggested, building out an organization and infra. With that being said, I think there's still enough opportunity to go after currently for it to be interesting for another firm. And we'd of course be looking to add other opportunities to the pipeline as well.
Are you willing to relocate to the Chicago or NYC area ? Are you willing to migrate everything over to another firm's trading system and risk platform?
Non-US domiciled. But in any case we're now an ECP, so that also changes things (albeit not for all venues). You had to figure that those Chicago hft shops that have become very active in crypto are doing something on the derivatives exchanges, no?
DRW has set up a separate entity (Cumberland) to attract and homologate counterparties for their Crypto trading business. https://cumberland.io/onboarding
Yes, I know they're active in the derivatives space, since they trade via offshore entities. And even that is questionable as it is not only a regulation issue but also a FATCA one. So if the beneficial owner of the offshore entity is an US entity, the offshort derivatives exchange IMHO would be an FFI and had to report as well. So it's definitely a grey area, no? So my question was if YOU have access to derivatives venues such as Deribit, FTX et al. in an 100% clean (no potential FATCA issue) way.