Industry highlights:

• Ex-Inception Capital Partner Launches $25M Fund to Bridge East & West Through Real-World Crypto Adoption

• Crypto Hedge Fund Sleeve Launched by Swiss $1B AUM Private Equity Firm

• Quant Fund Opens HFT Strategy to External Capital With +60% Annualized Return

…but first, let’s raise a glass to CFW’s official sponsor for 2025 🥂

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^{🗞 Allocator Developments 🗞}

Multi-Family Office Allocating to Digital Asset Funds After Rapid $1B AUM Milestone — Singapore-based Farro Capital has begun making LP commitments to digital asset strategies as part of its broader alternatives mandate, following its rapid growth to over US$1B in AUM within four months of launch. The firm is targeting evergreen and semi-liquid vehicles (The original LinkedIn post has recently been deleted) across private markets, including digital assets, and is actively seeking co-investment opportunities in IPO-ready companies.

Top-Performing Crypto Fund of Funds Marks One-Year Anniversary with Swiss Expansion — Amitis Capital’s Digital Assets Multi-Manager Fund has been named a top-performing fund-of-funds in the digital asset space for Q1 2025. As the fund marks its one-year anniversary, Amitis is preparing to open access to select institutional and professional investors in Switzerland.

Prop Trading Firms Seek External Allocations to Crypto Quant Strategies, with Tickets up to $10M — According to sources familiar with the firms, Triple Lemniscate—a proprietary investment manager specializing in AI-driven and quantitatively based strategies—is actively seeking to allocate capital to quantitative traders and trading teams, with a preference for high-frequency trading (HFT) strategies. Meanwhile, Chicago-based Teza Technologies is allocating between $200K and $10M to systematic trading strategies as part of its ongoing capital deployment efforts.

Fund of Funds Frenzy: $175M in Dry Powder to Deploy — Sartoria Capital debuted in April with allocations to seven liquid crypto hedge funds. Theta Capital Management raised over $175M for a new fund-of-funds focused on early-stage blockchain startups via specialized VC firms. Separately, BlockArrow Opportunity Fund launched as a liquid crypto fund-of-funds, allocating across 11 institutional managers spanning market neutral, long-biased, and quant/macro strategies. The fund targets full-cycle digital asset exposure with reduced downside volatility relative to BTC.

Swiss Based Family Office Hiring Investment Analyst — Zurich-based Spectrum Value Management is looking to bring on an Investment Analyst to cover Private Equity Funds & Directs, Hedge Funds, Private Debt and Real Estate. The firm is actively looking at allocating to the crypto fund space.

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🔥 What’s Hot in Crypto 🔥

Ex-Inception Capital Partner Launches $25M Fund to Bridge East & West Through Real-World Crypto Adoption

Lucas He has launched tmr Ventures, a U.S.-based early-stage venture fund targeting a $25M raise, according to SEC filings. The fund backs teams advancing real-world crypto adoption, with a thesis spanning tokenization across financial and non-financial assets, decentralized physical and service networks, and AI and data-driven products where crypto serves as the coordination, payment, and ownership layer.

He was previously an investment partner at Inception Capital, where he led research and investments across emerging crypto sectors. The portfolio includes early involvement in projects such as MegaETH, Natix, Opacity Network, MyShell, Talus, and Camp—spanning AI, DePIN, and core infrastructure.

An MIT alum and early crypto investor since 2013, his background includes institutional roles at State Street and Merrill Lynch, alongside years of hands-on work with crypto-native teams.

With strong ties in both the U.S. and Asia, tmr Ventures works with globally minded teams from day one. Having lived and worked in both regions, He brings a cross-border perspective informed by founder relationships and operating experiences. This East-West lens shapes the fund’s approach to supporting those teams beyond capital—through go-to-market strategy, partnerships, and execution support.

With a focus on tangible outcomes and long-term impact, tmr Ventures aims to support the next generation of founders—building with purpose and scaling across markets.

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Crypto Hedge Fund Sleeve Launched by Swiss $1B AUM Private Equity Firm

Clearsight Neutral — a Cayman fund designed to make crypto-native strategies accessible for institutional investors – was launched in early 2025 (previously run as a tracker certificate since September 2023). The fund surpassed $25M in AUM and is closing its founder class this month.

Clearsight Neutral Fund’s investment thesis focuses on a market-neutral, multi-strategy approach combining an internally run DeFi yield book with external fund allocations. The DeFi strategy spans liquidity provisioning, lending, basis trading, and yield farming, while maintaining exposure primarily in stablecoins and to a lesser extent in delta-hedged BTC or ETH. The majority of external fund strategies are focused on market making (high-frequency trading and statistical arbitrage).

Realized performance since the portfolio’s inception in September 2023 has delivered strong risk-adjusted returns, with a Sharpe ratio above 4.0 (using SOFR as the risk-free rate). Historical returns are unlevered, but the team is exploring some options to add moderate leverage on some of the DeFi strategies, while continuing to prioritize a defensive risk management approach through real-time alerts via Hypernative combined withextenstive due diligence and testing frameworks.

The Fund is currently allocated to 10 external managers, two of which were added to its portfolio in Q2. The DeFi book is run across EVM-compatible chains including Arbitrum, Base, Flare, Sonic, Avalanche and Ethereum mainnet, with ongoing exploration into alternative, non-EVM L1s (Sui, Solana) and broadening the underlying assets beyond USD, BTC, and ETH (whenever hedging is available). Target returns range between 15-25% net annually with low to moderate volatility (<5% realized vol since inception). The team was recently expanded with a senior developer bringing over five years’ experience building on-chain infrastructure and strategies.

Clearsight Investments AG, the Fund’s investment manager and sponsor, has a 15 year operational track record running regulated fund structures, focused on private equity turnaround strategies (deployed ~1B EUR across 5 funds) and brought in a new team for its expansion into digital assets. Clearsight is regulated in Switzerland since >10 years.

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Quant Fund Opens HFT Strategy to External Capital With +60% Annualized Return

According to information published on its website, Highstake, an AI-driven boutique quantitative trading fund, is now opening its high-frequency scalping strategy to external investors, with a target raise of approximately $3M. The firm describes this as part of a broader 2025 roadmap to move from a proof-of-concept phase to an institutional-grade operation.

The strategy—fully automated and trading on Binance Futures—focuses on short-term market movements using a custom-built trading system. It operates in USDT and trades a dynamic selection of high-volume cryptocurrency pairs. The fund has delivered a cumulative return of nearly 47% over eight months, with a reported win rate of 99% and average monthly returns of just under 5%. Risk controls include pre-set trade limits, layered safeguards for volatile markets, and live monitoring.

According to the firm, the strategy currently performs optimally at asset levels between $1M and $3M. As assets scale, Highstake plans to adjust trade selection and diversify its trading activity across more positions to maintain stability.

Highstake is led by founder Kais Yagnam, a digital asset portfolio manager with over seven years of experience in the cryptocurrency ecosystem. Since 2020, Yagnam has actively managed private portfolios for high-net-worth individuals and family offices, consistently delivering steady returns through disciplined asset allocation and risk management. His background in business strategy and investor relations informs his focus on building transparent, investor-first structures. He has raised capital for more than 40 blockchain ventures and helped develop institutional-grade reporting systems for crypto-focused investment platforms.

Highstake plans to continue scaling operations throughout 2025 and expects to add a senior investment or operational leader by year-end to support its transition to a more structured fund model.

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🍿 Blockchain Bytes 🍿

• After 19 consecutive months of positive performance and a +40% net return in 2024, M1 Capital—a market-neutral CeFi/DeFi fund—has launched a BTC fund (the M1 Fund) to provide exposure to a diversified set of market-neutral strategies, fully denominated in BTC (M1 Fund)

• A100x launched Fund II, a $50M early-stage vehicle focused on pre-seed and seed startups operating at the intersection of AI and digital assets (PitchBook)

• Temple Capital expanded its senior team with three key hires, including Richard Murray as Partner, as it continues to scale its $120M systematic crypto hedge fund. Founded in 2018, the fund is backed by Bain Capital and Pantera (Temple Capital)

• Kingsly Capital has brought on a new Partner to spearhead its DeFi and tokenized asset strategy. The new initiative targets $100M+ in AUM to capitalize on the next wave of tokenized real-world assets (Kingsly Capital)

• OSL Wealth, a digital wealth platform with +$600M in assets under custody, has partnered with Nine blocks Capital, a +$160M AUM crypto hedge fund, to offer qualified investors access to Nine Blocks’ flagship USD Market Neutral Fund and BTC Market Neutral Fund (The Asset)

• NextBlock has launched its first crypto-focused venture fund with an initial $40M allocation, targeting early-stage startups in DeFi, tokenization, and Web3 infrastructure. The fund has secured $35M in commitments and aims to close at up to $60M by end-2025 (Europepress)

• BIT Capital, has launched its first multi-asset fund with dynamic exposure to stocks, bonds, precious metals, and crypto. The move marks a strategic expansion beyond tech equities as the firm surpasses €1B in AUM (Das Investment)

• London-based Abraxas Capital has reportedly acquired nearly $500M in Ethereum over six days. Just one month ago, Abraxas acquired more than $250M worth of Bitcoin within three days (The Defiant)

• Venture investor DFJ Growth has raised $1.2B for a fifth flagship fund, its largest to date. DFJ’s portfolio includes investments into both both Coinbase and Alchemy (Fortune)

• Re7 Capital has launched a $10M venture fund focused on SocialFi, aiming to back 25–30 early-stage startups at the intersection of social media and DeFi (The Block)

• Two Prime has expanded its partnership with MARA Holdings, which will allocate 500 BTC to Two Prime’s institutional yield strategies. Building on an earlier BTC-backed loan arrangement, the move reflects a growing trend of active treasury management among major bitcoin holders (PR Newswire).

• Dao5 has closed its second fund at $220M, bringing total AUM to $550M. The multi-strategy fund will back institutional adoption of crypto, following early bets on projects like Berachain and EigenLayer (NFTgators)

• Sora Ventures is entering public markets via a merger with NASDAQ-listed Top Win International, a Hong Kong luxury watch distributor pivoting to digital assets. The rebranded entity, “AsiaStrategy,” will be co-led by Sora founder Jason Fang and Top Win CEO Tony Ngai. Sora has also committed $150M to support Asian firms adopting Bitcoin treasury strategies (UNO CRYPTO)

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