Other industry highlights:

• Swiss Asset Manager Partners Launch Multi-Strategy Hedge Fund Allocator

• $15B Asset Manager Winds Down Crypto Hedge Fund Allocation Vehicle

• TradFi Options Shop Posts 96.4% Annualized Returns, Seeks to Scale

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^{🗞 Allocator Developments 🗞}

Swiss Asset Manager Partners Launch Multi-Strategy Hedge Fund Allocator — Richard Byworth and Marc Syz have launched BYZ Partners, a new investment firm combining hedge fund and private equity investing under a partnership-driven model. Byworth will lead the firm’s “Stability” strategy, which allocates across Bitcoin-, Swiss franc-, and U.S. dollar-denominated hedge fund opportunities, while Syz will oversee a deal-by-deal private equity strategy focused on B2B businesses across Europe and Southeast Asia.

$300M Multi-Manager to Expand Crypto Market Neutral Allocations — Falcon Investment Management, which manages approximately $300M in AUM, is actively seeking allocations to liquid investment strategies including long/short equity, global macro, HFT and systematic trading, FX, and crypto market-neutral funds. The firm noted that it is currently focused on teams willing to operate under a first-loss structure during their first year.

$30M Fund of Funds Pivots to All Weather Strategy — Scenius Capital, founded by Gregory d’Incelli and Nicolas Pujol, has evolved its flagship Digital Assets Opportunity Fund into the new Scenius All Weather strategy. The firm, which manages approximately $30M across a liquid crypto fund-of-funds strategy, a venture fund-of-funds, and special purpose vehicles, is broadening its mandate to target multiple sources of alpha emerging from the convergence of traditional finance and decentralized finance. The strategy will maintain a smaller allocation to directional crypto opportunities while focusing on more diversified, risk-adjusted return streams tied to the growth of tokenized financial infrastructure.

$15B Asset Manager Winds Down Crypto Hedge Fund Allocation Vehicle — Multiple sources familiar with the matter have indicated that Bitwise is in the process of winding down the Bitwise Multi-Strategy Alpha Fund and has reportedly issued redemption notices to limited partners. The fund invested across a range of strategies, including fundamental Web3-focused managers, market-neutral arbitrage and relative value strategies, quantitative trading firms, and special-situations opportunities According to data published by RCM Alternatives, the fund's most recently reported AUM was approximately $31M. It remains unclear whether Bitwise intends to continue allocating capital to external managers through alternative structures, such as separately managed accounts or other investment vehicles. Bitwise has not publicly announced any such plans.

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🔥 What’s Hot in Crypto 🔥

TradFi Options Shop Posts 96.4% Annualized Returns, Seeks to Scale

Zavara, an institutional crypto derivatives technology firm, through its operating entity, Zavara Holdings LLC (Belize), has developed a fully automated quoting and execution system for crypto options. The system is deployed across the major institutional venues that account for the majority of global crypto options trading volume and is licensed to professional trading counterparties on a non-custodial, agent-only basis. It specializes in quoting multi-leg options structures—including calendar spreads, butterflies, vertical spreads, and risk reversals—using liquidity sourced through institutional RFQ networks alongside continuous quoting on central limit order books.

The platform is engineered to systematically capture the variance risk premium — the structural gap between implied and realised volatility — through continuous gamma harvesting and theta collection. At its core is a unified, arbitrage-free eSSVI volatility surface that ensures consistent pricing across strikes and maturities, addressing inefficiencies common in multi-leg execution. This is complemented by a Bates-Kou jump-diffusion model calibrated to Bitcoin’s asymmetric return profile, improving pricing accuracy and reducing adverse selection in out-of-the-money options.

Zavara is led by a highly experienced TradFi team that has been focused on crypto options since 2021, combining deep derivatives expertise with production-grade infrastructure. The quantitative team owns the model stack end-to-end — volatility surface calibration, stochastic modeling, regime detection, and systematic alpha generation — supported by a low-latency architecture pairing Python-based research with a Rust execution layer designed for sub-millisecond performance.

Since its production launch in August 2025, the software has generated a cumulative net return on allocated capital of +72.65%, with an annualized return of +96.4%, a Sharpe ratio of 10.22, a maximum drawdown of -4.11%, and a daily win rate of 78.8%. The v3.2 architecture is fully deployed and currently in an active scaling phase, with multiple institutional counterparty engagements underway.

_{Zavara does not custody client assets, does not operate a pooled investment vehicle, and is not soliciting retail capital. Commercial terms with counterparties are bespoke and structured as software-licence or principal-execution arrangements only. Past performance is not indicative of future results. Digital asset derivatives trading involves substantial risk, including the potential total loss of capital. Performance figures are unaudited. Issued for information only to qualified institutional counterparties; not an offer or solicitation. Zavara Holdings LLC is a Belize software and execution-advisory firm and does not operate a regulated investment fund.}

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🍿 Blockchain Bytes 🍿

• Galaxy and Sharplink are launching a $125M DeFi yield fund, backed by $100M from Sharplink’s $2.1B Ethereum treasury and $25M from Galaxy. The fund will deploy capital across on-chain lending, trading, and yield strategies (Forbes)

• Parataxis Capital, which manages more than $200M in assets, has launched the Parataxis Systematic Alpha Fund with $5M in initial capital. The strategy seeks to profit from short-term volatility in Bitcoin and Ethereum regardless of market direction (Hedge Fund Alert)

• Quantitative Volatility Research (QVR), the $1.6B hedge fund founded by Benn Eifert, is winding down after losses across its volatility and derivatives strategies. The firm, which also operated a nascent crypto derivatives sleeve, is reportedly in discussions with several larger asset managers regarding an acquisition (Bloomberg)

• Former crypto investor and sports bettor Mark Thomas has launched Badass Capital, an AI-first hedge fund that uses proprietary models and autonomous agents to identify opportunities across sports betting, crypto, traditional markets, and prediction markets. The firm’s strategies are built on AI tools developed from years of hands-on trading and betting experience (Mark Thomas)

• Third Eye, managing +$100M AUM, was awarded Grand Master status in Binance Capital Connect’s Masters Tournament after finishing first in the Funding Arbitrage category. The firm earned the top ranking based on a risk-adjusted score combining returns and drawdowns, adding to its recent first-place finish across all metrics in the Bullish Professional Trading Competition (Third Eye)

• Bitwise, which manages roughly $15B in assets, will take over management of Superstate’s $267M tokenized Crypto Carry Fund (USCC), which generates yield through the crypto cash-and-carry basis trade, renaming it the Bitwise Crypto Carry Fund (The Block)

• ParaFi Capital, the +$2B asset manager, has expanded its investment team with the additions of Jeffrey Park as Partner and Portfolio Manager and Ryan Silva as Head of Trading. Park joins after roles at ProCap Financial, Bitwise, Harvard Management Company, and Morgan Stanley, while Silva brings experience across crypto, macro, and fixed income markets from BlockTower and Borderless (ParaFi Capital)

• RS Crypto Income Fund has attracted roughly $20M in new inflows, according to recent SEC filings. The strategy seeks to generate income by selling options on Bitcoin-linked ETFs such as IBIT and BITO, aiming to capitalize on elevated crypto volatility while offering investors a lower-risk alternative to direct Bitcoin exposure (RS Crypto)

• RoboStrategy (BOT) has appointed Mechanism Capital founder Andrew Kang as CEO. Kang’s family office was one of the most active and influential investors during “DeFi Summer” before expanding into AI and robotics. RoboStrategy, which listed on Nasdaq in May and recently secured a $2B committed equity facility from Roth Principal Investments, aims to provide public market investors exposure to leading robotics companies (MSN)

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