Crypto expert Ophelia Snyder has not yet turned thirty and runs one of the world's best-known startups in Zug's Crypto Valley. She spoke with finews.asia about co-investor Cathie Wood and early documentaries for the Discovery Channel.
Mrs. Snyder, you are 29 years old and have already founded 21Shares, a company that launched the world's first crypto ETP and last year managed the best-performing index product ever. What can you possibly aim for in the next ten years?
We’re just getting started. 21Shares exists to make crypto accessible to everyone. Crypto has proven itself to be the best performing asset class over the past 10 years, and we believe it will continue to outperform for the next decade. The pace of innovation in the sector is incredible and shows no signs of slowing. Our product suite will continue to expand to match that speed of innovation.
However, the value of digital assets has nearly halved since last November. Have you had to deal with outflows from your ETPs? And how has 21Shares started the new year?
We have had a strong start to the new year. Despite the market volatility, we have continued to see inflows into our product suite cross the line. We haven’t been dealing with any significant outflows in the product. We think this is really a testament to our research. Our clients have a clear understanding of crypto fundamentals and the incredibly positive signs of growth in the segment.
«These fundamentals showcase the growth potential of the crypto space»
Use cases and adoption are expanding whether those are in Decentralized finance, NFTs or new Layer 1 applications which promise greater scalability. These fundamentals showcase the growth potential of the crypto space which our clients really respond to.
Analysts at UBS are already painting the next crypto winter on the wall. Rightly so – or are there also positive trends for digital assets?
We see primarily«leave banking and big tech for jobs in crypto/Web 3, or the creation of new multi-billion dollar venture capital funds created by FTX and Andreesen Horowitz; the crypto ecosystem is growing at incredible speed. Additionally, we are seeing the first steps towards broad commercialization with partnerships such as Coinbase/Mastercard as well as the first steps towards resolving scalability issues in blockchain through rollups and sharding.
Our research team lays out a lot of these developments in our quarterly State of Crypto. This isn’t just a reflection of the markets but the creation of a strong ecosystem in the crypto asset space that can withstand market corrections. The sector is so early in its lifecycle that it is important to take a long view. Investing in the crypto space is closer to venture capital given the stage of development of the underlying technology.
The US Regulator has once again tightened the rules for crypto index products. Is that good or bad for providers like 21Shares?
We believe that regulation can be a force of good. Regulations can bring much-needed clarity to the space and ultimately benefit users fostering broader adoption.
«Cathie Wood is a remarkable human being in addition to being an incredibly intelligent investment manager»
These are a net positive for 21Shares as we seek to comply with the highest standard of product construction with the indexes we bring to the market.
In the US, you are working with well-known fund manager Cathie Wood. How did you get in touch with her?
I met Cathie Wood at a conference a few years ago and we developed a great relationship based on our shared interest in innovation and research. Last year she joined our firm’s board of directors and we are thrilled to be partnering with her and the ARK Invest team as we look to expand in the U.S. market.
How strong is Wood's presence at 21Shares?
Cathie Wood is a remarkable human being in addition to being an incredibly intelligent investment manager. Hany and I view her as a strategic partner in our mission to continue building widely accessible bridges into the crypto world and a world class research organization.
You and Ms. Wood are examples of female careers in the finance and fintech world. How did you make your way in the industry?
It’s been quite a unique journey, as I studied earth systems at Stanford University and spent the early part of my career working in labs and making marine biology documentaries for the Discovery Channel. I began my finance career working in venture capital and major investment banks because of my love for numbers.
You live in New York and Rome. When do you find time to visit 21Shares' headquarters in Zug?
I was raised in New York and Rome as my family is split between the two cities. However, I now live mostly between Zurich and New York.
«Neither my co-founder nor I am Swiss nationals nor did we have any relationship with Switzerland before»
This gives me the opportunity to spend quite a bit of time in our Swiss headquarters working with our local team.
How do you perceive the Zug Crypto Valley?
Neither my co-founder nor I am Swiss nationals nor did we have any material relationship with Switzerland before founding the company. We intentionally set up our business in Switzerland. We did this because Switzerland provided very clear guidance on crypto regulations as well as financial products. This combination has allowed the country to become a leader in the crypto space. We’re grateful to be a part of this community and to call Switzerland our home.
Amun respectively 21Shares is said to have been born out of the idea to make it easier for the parents' generation to deal with crypto. Do your parents actually trade in crypto?
Yes, my mother does invest in crypto. Both my mother and my cofounder’s mother were early adopters in crypto but struggled with the complex infrastructure involved in investing in the sector. We wanted simple products that they would feel confident using. This is how 21Shares got started.
What is the best advice you ever got from your parents?
My mother always leads by example. It is something I have truly admired and have tried to emulate throughout my career.
Ophelia Snyder is the president of crypto startup 21Shares, which she co-founded in 2018 while still Amun in Zug. The fintech now says it manages $2.5 billion in assets in exchange-traded index products (ETPs) geared toward crypto investments and is valued at $700 million. The New Yorker originally studied earth sciences; the U.S. business magazine «Forbes» counts Snyder among the «30 Under 30» entrepreneurs of 2022.
