The Fund’s investment strategy is focused on monetising opportunities in the global digital asset space through a multiinvestment asymmetrical approach which aims to maximise the Fund’s returns whilst safeguarding the principal invested through prudent asset allocation.
The Fund uses an active approach that combines both traditional financial funds management and digital asset expertise to invest across the spectrum of opportunities available in the digital ecosystem. This includes:
- investing into digital assets and protocols across a range of products (including spot and derivatives) available through a network of liquidity providers ranging from centralized exchanges, decentralized exchanges and over-the-counter providers; and
- sourcing and executing other opportunities with correlation or exposure to identified themes within the sector available through traditional financial investment products.
By combining active asset allocation with institutional grade custody, monitoring and risk management systems, the Manager believes strong risk-adjusted returns can be delivered.

Portfolio Composition
The Fund has been established to provide exposure to a portfolio composition combining both larger, more liquid digital assets (such as Bitcoin (BTC) and Ethereum (ETH)), as well as a small allocation for higher risk opportunities that aim to provide significant outperformance. The Fund will also hold an allocation to market neutral, fixed income and special situation strategies to mitigate against digital asset volatility and/or improve overall Fund performance. The target composition of the Fund’s portfolio is set out below.
Asset Class |
Investment Exposure Range* |
Larger, more liquid cryptocurrencies (such as BTC and/or ETH) |
40 - 75% |
Stablecoin denominated staking strategies, fixed income investing and market neutral trading |
20 - 60% |
Alternative opportunities |
0 - 20% |
* The Manager may change the investment strategy, asset allocation ranges and processes of the Fund, provided that the changes are not inconsistent with the terms of the Trust Deed and the Management Agreement. Unitholders will be notified in writing if any such change is considered by the Trustee to be material or would not have been reasonably expected by Unitholders. Any material change to the Fund’s investment strategy or asset allocation ranges as a consequence of a change in market conditions will require the prior approval of the Fund’s Investment Committee.
Larger, more liquid cryptocurrencies (such as BTC and/or ETH)
Between 40% and 75% of the Fund will be exposed to larger, more liquid cryptocurrencies (such as BTC and/or ETH), held either directly or through DeFi strategies.
The Manager will utilise a combination of ‘over the counter’ services and exchanges for acquiring holdings in such cryptocurrencies and, if relevant, will seek the most appropriate liquidity pool providers to minimise transaction costs and fees whilst maximising yield.
Larger, more liquid cryptocurrencies (such as BTC and/or ETH)
Between 40% and 75% of the Fund will be exposed to larger, more liquid cryptocurrencies (such as BTC and/or ETH), held either directly or through DeFi strategies.
The Manager will utilise a combination of ‘over the counter’ services and exchanges for acquiring holdings in such cryptocurrencies and, if relevant, will seek the most appropriate liquidity pool providers to minimise transaction costs and fees whilst maximising yield.
Market Neutral and Fixed Income Strategies
Between 20% and 60% of the Fund will be allocated to market neutral and fixed income strategies which give non-directional exposure to products mitigating against typical digital asset volatility.
Market neutral trading strategies utilize a variety of derivative and cash products to profit from non-directional pricing dislocation and market inefficiency. Combined with DeFi strategies, market neutral trading can help hedge the Fund against market volatility.
Fixed income strategies include:
- Investments in centralized and decentralized yield-bearing products within the digital ecosystem (typically denominated in stablecoins). Stablecoins are a type of cryptocurrency that are designed to maintain a stable value by being pegged to a specific asset or basket of assets. As a result, they are typically less volatile than other cryptocurrencies. The Fund uses stablecoins to invest in yield-bearing projects, providing an alternative, fixed-income return profile for the portfolio whilst also insulating from exposure to overall market volatility.
- Opportunistic allocation to other fixed income products (e.g corporate debt) of companies with exposure to the digital ecosystem.
Alternative opportunities
Between 0% and 20% of the Fund can be allocated to alternative digital asset opportunities, namely investments in early-stage tokens, emerging blockchain companies, special situations (including distressed credit investments)*, and direct equity investments into companies with exposure to blockchain. This allocation is intended to give scope to invest in higher-risk, esoteric investments whereby the Manager sees opportunities to improve the diversification and aggregate return profile of the Fund without undermining overall risk concentration or performance.
DeFi and Staking Strategies
Up to 100% of the Fund may be exposed to DeFi strategies with the objective of producing above market yields. The Fund’s DeFi strategies primarily consist of staking strategies, including but not limited to, validator staking, liquidity staking and lending staking. Other DeFi strategies implemented may include the arbitraging of inter-market dislocations across different markets.
The Fund may lend crypto assets to liquidity pools (liquidity pool staking) to offer liquidity to decentralized exchanges in exchange for additional returns.
The Fund may also lend crypto assets to lending pools (lending staking) to receive interest paid by borrowers. The Fund may directly or indirectly participate in validator staking pools as part of a Proof of Stake network’s consensus mechanism. By participating in such networks, an investor (such as the Fund) is able to generate additional returns on staked assets.
When using these strategies, the Manager utilises a combination of yield aggregating protocols to ensure ‘rewards’ (yield) returned as part of the staking process is continually reinvested, ensuring maximum yields are achieved and further, significantly reducing gas (transaction fees) and exposure to the price movements of the ‘reward’. The main protocol used for yield aggregation is Beefy Finance.
Storage
The Fund’s digital assets will be stored in either staking pools, exchange wallets, cold storage, multi-signature wallets or by a third-party custodial services provider approved by the Trustee, depending on the type of asset and how those assets are being used to generate returns.