Institutional Investors Getting Into DeFi With Valkyrie’s Hedge Fund
It looks like the world of decentralized finance (DeFi) has managed to make enough of a splash to catch the eye of institutional investors in the short period of time since it has been around. Latest news coming in indicates that Valkyrie Investments is planning to launch a DeFi-focused hedge fund valued at $100 million by as soon as next week.
The hedge fund, known as the Valkyrie On-Chain DeFi Fund, is connected to the performance of various DeFi assets and will be available starting on November 22. It will diversify holdings of investors across at least 24 different cryptocurrencies on over 13 different blockchains
While the firm is yet to publish complete details, it is expected that the DeFi fund could invest in assets across Ethereum, Solana, Avalanche, Binance Smart Chain, Matic and Fantom. The $100 million that will be invested across these assets will be obtained from Valkyrie’s investors and general partners.
According to Managing Director of DeFi at the company, Wes Cowan, Valkyrie plans to hold on-chain assets to make the most of yield farming, staking rewards and other incentives to generate ROI within the fund. This is not the first DeFi focused fund to launch in the market and follows closely after key rival Galaxy Digital announced its DeFi fund recently. However the difference between the two hedge funds is that Galaxy Digital’s fund holds cryptocurrency assets passively and does not leverage yield farming and staking rewards to generate profits.
Valkyrie is not new to cryptocurrency-based hedge funds, maintaining a Bitcoin ETF for several years now. It’s also one of the first asset managers to launch a Bitcoin futures ETF earlier this year, which went on to generate as much as $80 million worth of trading volume on its very first day of launch.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals