# High-Level Overview
Zanshin Capital Management LLC is a cryptocurrency-focused hedge fund that specializes in proprietary trading and algorithmic investment strategies[1][2]. Founded in November 2022 and based in Dorado, Puerto Rico, the firm aims to deliver post-fee returns exceeding its benchmarks of Bitcoin and Ethereum through quantitative-driven approaches to digital assets[2].
The firm's mission centers on generating alpha in the digital assets ecosystem by combining advanced trading systems with portfolio construction and position sizing strategies[2][3]. Rather than pursuing broad venture capital exposure, Zanshin operates as a specialized crypto asset manager targeting asymmetric returns through systematic trading methodologies.
# Origin Story
Alan Schill founded Zanshin Capital Management in November 2022 after more than two decades of experience in trading and investing across financial markets[2]. Schill's journey into cryptocurrency began in mid-2016 when he "went deep down the crypto market rabbit hole," eventually becoming convinced that crypto markets paired with his proprietary strategies represent "the greatest asymmetric bet of any asset class" in his lifetime[2].
Schill brings substantial expertise in quantitative-driven approaches across asset classes, combined with strong programming capabilities and a research-focused methodology for identifying tradeable market edges[2]. His background spans traditional financial markets before his pivot to digital assets, positioning him as a bridge between institutional trading discipline and crypto market opportunities.
# Core Differentiators
- Algorithmic trading focus: The firm emphasizes proprietary trading systems and algorithmic strategies rather than traditional fundamental analysis or venture investing[1][2]
- Quantitative expertise: Schill's approach combines systematic trading with portfolio construction and position sizing optimization to manage risk-to-reward ratios[2]
- Crypto specialization: Unlike generalist hedge funds, Zanshin concentrates exclusively on digital assets, allowing deep market expertise and specialized edge development[2][3]
- Benchmark clarity: The firm explicitly targets Bitcoin and Ethereum returns as performance benchmarks, providing transparent, measurable objectives[2]
# Role in the Broader Tech Landscape
Zanshin represents the maturation of crypto asset management as a distinct institutional category. As digital assets have evolved from speculative instruments to established asset classes, specialized managers like Zanshin have emerged to serve investors seeking professional, systematic exposure rather than passive holdings.
The firm's existence reflects broader market trends: institutional adoption of cryptocurrencies, the viability of algorithmic trading in volatile digital markets, and the geographic arbitrage of operating from Puerto Rico's favorable tax environment for investment managers[2]. Schill's explicit enthusiasm for AI-blockchain convergence also positions the firm at the intersection of two transformative technology trends[2].
# Quick Take & Future Outlook
Zanshin operates in a favorable market moment for crypto-focused managers. As digital assets mature and regulatory clarity improves, systematic trading firms with proven quantitative methodologies are likely to attract institutional capital seeking professional management rather than direct exposure.
The firm's future trajectory depends on demonstrating consistent outperformance relative to its Bitcoin and Ethereum benchmarks—a challenging bar given crypto market efficiency improvements. Schill's conviction in AI-blockchain synergies suggests the firm may evolve toward strategies capturing value from emerging blockchain applications beyond pure trading, potentially positioning Zanshin as both a trading operation and a thematic investor in crypto infrastructure innovation.
