US asset management company Valkyrie has gone beyond its crypto ETF initiatives after announcing a new DeFi-focused hedge fund on Monday. The $100 million fund, called the ‘Valkyrie On-Chain DeFi Fund’, will include direct investments from Valkyrie’s existing investors and general partners.
According to Valkyrie’s Managing Director of DeFi, Wes Cowan in an email to Coindesk, the fund will invest in at least 24 cryptocurrencies on 13 different blockchains. “We see a lot of opportunities on blockchains including Ethereum, Avalanche, Solana, Binance Smart Chain, Matic and Fantom,” Cowan said.
Officially set to launch on November 22, Valkyrie’s fund will include participation from qualified investors from the United States and abroad. One of the notable facts about the fund is that it will hold its assets on-chain, setting itself apart from the likes of ‘Bloomberg Galaxy DeFi fund’ and others. Cowan noted:
“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.”
Valkyrie was the second company to launch Bitcoin futures ETF in the United States. The company has also lined up two crypto industry-related ETF applications to the SEC.