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| Eric Jackson Launches EMJX to Reduce Crypto Volatility Risk |
With bitcoin trading far below its all-time high of nearly $109,000 reached earlier this year, many investors remain eager for cryptocurrency exposure but are tired of the stomach-churning drawdowns that have become synonymous with the asset class. Veteran hedge fund manager Eric Jackson believes he has a solution.
Jackson’s EMJ Capital is preparing to launch EMJX, a new kind of “crypto treasury company” that aims to offer investors meaningful exposure to digital assets while dramatically reducing downside volatility through active hedging and artificial intelligence-driven risk management.
EMJX: A Risk-Managed Crypto Treasury Company
Unlike single-asset vehicles such as MicroStrategy – the best-known corporate bitcoin holder led by Michael Saylor – EMJX will hold a diversified basket that includes bitcoin, ethereum, and a carefully selected group of smaller cryptocurrencies. More importantly, the company plans to use proprietary hedging strategies to limit losses during crypto winters while still capturing a large portion of the upside when prices rally.
“We think the next frontier is risk-managed digital treasuries,” Jackson told Reuters in an exclusive interview. “It still allows us to hopefully capture the upside when bitcoin is doing well but helps insulate us from these massive drawdowns.”
How the EMJX Hedging Strategy Works
The core of EMJX’s approach relies on artificial intelligence models developed by EMJ Capital. These models have evolved to incorporate signals from both bitcoin and ethereum simultaneously, making them more robust than single-coin systems.
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Jackson points out a key advantage crypto markets have over traditional assets: complete on-chain transparency. Every significant transaction is recorded publicly in real time, giving sophisticated participants the ability to track “whale” movements and money flows with unprecedented clarity.
According to backtests provided by EMJ Capital, a portfolio following the EMJX strategy would be up approximately 31% year-to-date in 2025 – even as bitcoin has fallen around 3%, ethereum has dropped roughly 10%, and MicroStrategy shares have declined more than 41% over the same period.
Beyond Bitcoin: Selective Altcoin Exposure
While bitcoin and ethereum will form the foundation of the treasury, Jackson plans to allocate a portion to smaller cryptocurrencies where his team sees asymmetric upside potential.
Drawing on the stock-picking expertise that helped EMJ Capital generate outsized returns in traditional equities – such as the early identification of Carvana when the stock traded below $11 (now trading near $378) – the firm intends to apply similar rigorous analysis to promising altcoins.
“We only have to be right on a handful and it could have a very significant impact on the value of the overall treasury as it plays out,” Jackson explained.
The Evolution of Corporate Crypto Treasuries
The concept of corporate crypto treasuries first gained mainstream attention when MicroStrategy began aggressively accumulating bitcoin in 2020. Since then, several public companies have followed suit, treating bitcoin as a superior store of value compared to cash or bonds in an environment of persistent currency debasement.
However, the pure “buy-and-hold” approach has exposed shareholders to extreme volatility. MicroStrategy stock, for example, has experienced multiple 70-90% drawdowns despite bitcoin’s long-term appreciation.
EMJX positions itself as the next logical evolution: maintaining strategic crypto exposure while actively managing risk – essentially bringing hedge-fund-style portfolio management to the corporate treasury space.
Why Crypto Data Is a Hedge Fund’s Dream
Jackson emphasized that blockchain transparency creates a richer dataset than almost any traditional financial market. Large transfers, exchange inflows and outflows, and wallet clustering can all be monitored in real time, offering valuable leading indicators that simply do not exist in equities or fixed income.
Combined with machine learning models trained on years of crypto market cycles, EMJ believes it can identify regime changes early and adjust hedging overlays accordingly – whether through futures, options, or other derivatives.
Looking Ahead for EMJX and Crypto Investors
While exact launch timing and structure details are still being finalized, Jackson made clear that EMJX is designed for investors who believe in the long-term potential of digital assets but no longer have the risk tolerance – or shareholder mandate – for unhedged exposure.
As institutional adoption of cryptocurrency continues to mature, products that can deliver asymmetric returns (participating in bull markets while cushioning bear markets) are likely to attract significant interest.
For investors burned by previous crypto winters yet still convinced of the technology’s transformative potential, Eric Jackson’s EMJX could represent exactly the kind of sophisticated vehicle the market has been waiting for – a bridge between traditional risk-managed investing and the revolutionary possibilities of digital assets.
With bitcoin and ethereum both showing signs of stabilization after a difficult 2025, the timing of a volatility-controlled crypto treasury vehicle may prove particularly compelling for institutions and high-net-worth individuals seeking re-entry points into the sector.
