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The Valkyrie fund would invest in several DeFi protocols. It will include Ethereum, Binance Smart Chain, Polygon, Avalanche, Solana, and Fantom.
Specialized alternative asset management firm Valkyrie Investments is planning to launch a $100million hedge fund backed by the firm’s investors and general partners. With the successful launch of a DeFi fund, Valkyrie will join the likes of Galaxy Digital, which just launched a DeFi tracker fund. Notably, the US Securities and Exchange Commission (SEC) gave Valkyries Investments approval to launch a Bitcoin futures ETF last month. On its first day of operation, the Valkyrie Bitcoin futures ETF generated $80 million in trading volume.
Valkyrie Plans to Launch $100M DeFi Hedge Fund
Crypto firms are making movies to expand their presence in asset management. Several asset managers are eyeing Bitcoin ETF spots and await approval from the SEC.
The new hedge fund, Valkyrie On-Chain DeFi Fund, will connect to several assets across several blockchains. Reports showed that the new fund would be available from the 22nd of November. The DeFi hedge fund will connect with the performance of several assets. Specifically, it will connect to a minimum of 24 crypto assets.
Valkyrie managing director of DeFi, Wes Cowan, noted that the Investments would hold its assets on-chain. Cowan explained further:
“This allows us to participate in the upside while also gaining additional yield from lending, liquidity pools, farming and staking in the DeFi ecosystem. We get the appreciation plus the compounded yield generated from on-chain DeFi participation.”
At the same time, the specifics of the fund make Valkyrie’s offering different from that of Galaxy Digital. Galaxy Digital holds its crypto assets passively and does not leverage the DeFi features.
Former Tom Brady’s Handler to Run Valkyrie’s New Fund
The Block revealed that former Tom Brady’s “handler” and business manager Will McDonough. McDonough, who is also a vice-chairman at Valkyrie, said that the firm has an “unbelievable interface” that allows real-time data on different blockchains for 250 tokens. Explaining Valkyrie’s strategy, the vice-chairman explained:
“We find a dislocation, take an exposure to the token, wait for the dislocation to close. While we are waiting, we are going to stake.”
McDonough has been an active name in the crypto industry since 2017. He is the founder of crypto project iCash and the co-founder of Atlas Mara with former Barclays CEO Bob Diamond. Before partnering with Diamond on Mara, McDonough worked with an investment team at Goldman Sachs. At the time the executive was working there, the investment team managed $17 billion.