Valkyrie Investments has announced a $100 million DeFi fund designed to cater to institutional investors and offer them exposure to the growing industry of decentralized finance – or ‘DeFi’ in crypto circles.
The “On-Chain DeFi fund” goes live on November 22 and would invest in about a dozen protocols spread across thirteen blockchains. The fund will be available for accredited investors in the US and abroad
More about Valkyrie’s DeFi Hedge Fund
According to Valkyrie Investment’s managing director Wes Cowan, the organization’s management team thinks that there are plenty of opportunities that exist in major DeFi 2.0 and 1.0 protocols, including Solana, Avalanche, Magic, Fantom, Binance Smart Chain, and Ethereum. The fund will additionally hold assets on-chain apart from investing in DeFi tokens.
“This allows us to participate in the upside while also gaining additional yield from lending, liquidity pools, farming, and staking in the DeFi ecosystem,” explained Cowan in a statement.
Valkyrie’s existing investors and partners associated with the firm have contributed to the $100 million hedge fund. The offering was co-founded by Wes Cowan in collaboration with Valkyrie’s vice chairman Will McDonough, who was previously employed with firms such as Goldman Sachs and Avenue Capital.
Financial institutions like Goldman Sachs view DeFi as an alternative to mainstream financial services which might prove beneficial for the underbanked population. However, the recent developments in the DeFi industry have yet to counter the flaws associated with it such as hacking and scams.
The new hedge fund follows Valkyrie’s successful Bitcoin Futures ETF that attracted a sizable trading volume of $80 million on its first day of trading.