Other industry highlights:

• $100M Pure Alpha Fund Surges 82% Amid Market Downturn

• $35M BTC Relative Value Fund Swaps 2 & 20 for Pure Performance Fee Model

• $10M Multi-Strategy Hedge Fund Launches with 31% Annualized Returns

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

^____________

🚀 ML Tech Launches New Portfolio Optimization Tool

ML Tech is excited to announce the release of our next-generation Portfolio Optimization Tool, designed to help asset managers, data-driven allocation decisions with ease.

Built on ML Tech’s robust execution and analytics infrastructure, the tool enables users to:

• Run scenario analyses to understand risk/return trade-offs with different portfolio constitutions

• Visualize performance and risk metrics through intuitive, institutional-grade dashboards

• Optimize portfolios to reach their investment goals

Early testers have reported faster decision cycles, improved risk transparency, and a smoother workflow from research to allocation. This launch marks an important step in ML Tech’s mission to empower investors with cutting-edge tools that bring clarity, speed, and precision to digital asset portfolio management. Click the button below to explore ML Tech's new Portfolio Optimization Tool.

Meet us in Abu Dhabi: Our business development team member Helen Guo will be in Abu Dhabi for Bitcoin MENA, Abu Dhabi FinTech Week, and Solana Breakpoint from December 7–12. To schedule an in-person meeting to discuss investment opportunities and the new Portfolio Optimization Tool, please contact her at [email protected]. We look forward to connecting with you!

____________

^{🗞 Allocator Developments 🗞}

Crypto RIA Tops $1B Amid Leadership Change — Digital Ascension Group, a crypto-focused wealth manager, has surpassed $1B in AUM. The firm oversees capital on behalf of ten high-net-worth families and 1,500 affluent individuals, offering customized investment strategies that include allocations to external fund managers. The milestone comes as the firm undergoes a leadership shift: Matthew Snider, formerly CIO of Digital Wealth Partners, its asset management arm, has recently departed.

$500M Fund of Funds Opens New York Office — L1 Digital, a Zurich-based investment advisor with $500M in AUM, has opened a New York office as part of its international expansion. The firm manages three vehicles—L1D Blockchain Venture SLP, L1D Blockchain Venture II SLP, and Layer1 Multi Manager. Its portfolio includes stakes in prominent firms such as Multicoin Capital, DeFiance Capital, Castle Island Ventures, and 1kx.

Family Office Adds $600M DeFi Fund to Offering —MGI Family Office has added a new manager specializing in market neutral strategies within DeFi to its investment platform. The fund, which offers monthly redemptions with no lock-up, has delivered an annualized net return of over 18.5% since launching in August 2020, with no down years and a high percentage of profitable trading days. With more than $600M in assets, MGI’s manager selection process emphasizes institutional quality, requiring a minimum $100M in AUM, strong absolute and risk-adjusted returns, and low drawdowns.

Emerging Multi-Manager Seeks PM Talent — Lighthouse Collective Capital is actively sourcing additional systematic portfolio managers to join its Diversified Quant Fund, which allocates to 12–20 managers across directional, market neutral, and delta neutral strategies. The firm operates a multi-manager, multi-strategy platform purpose-built for digital asset managers, handling infrastructure, centralized risk, and operational complexity. The initiative is part of a broader effort to scale its investment platform and enhance visibility, marked by the recent launch of its new website.

____________

🔥 What’s Hot in Crypto 🔥

$100M Pure Alpha Fund Surges +82% Amid Market Downturn

While much of the crypto market has struggled through the second half of 2025, Third Eye has delivered standout performance. Since its launch in August, the fund is up 82%—posting gains every month despite Bitcoin declining more than 20% and major altcoins shedding over 50%. On October 10th alone, Third Eye climbed 12%, even as some tokens fell as much as 80% within a single trading session.

The fund runs a dynamic strategy that blends directional and market-neutral trading. Core positions span relative value trades in spot and perpetuals, with the team expressing views shaped by macro trends, fundamental analysis, and evolving narratives. The approach also includes event-driven altcoin trades, funding arbitrage, DeFi yield farming, tradfi crypto equities, and distressed/special situation opportunities.

Since launching in August, Third Eye has already surpassed $100M in AUM—a rapid growth trajectory fueled by both performance and institutional interest. As the fund scaled, the team expanded as well, adding three senior hires: Guy Cipriano as CFO and COO, bringing over 25 years of experience across industries; Christine Fang as Head of IR and BD, a former partner at a crypto long/short fund and Citi alum; and Federico Natali as Portfolio Manager and Head of Risk, with deep expertise in derivatives and distressed crypto assets.

Third Eye is led by CEO and Co-CIO Tian Zeng, a veteran of Citi, Deutsche Bank, and Citadel, alongside Co-CIO @DefiSquared, a crypto-native trader known for his top-ranked performance on Bybit. The firm now operates across New York, Dubai, and Hong Kong, with a growing team built to navigate volatility.

____________

$35M BTC Relative Value Fund Swaps 2 & 20 for Pure Performance Fee Model

Founded in 2019, Bursera Capital has emerged as one of the longest-standing funds in the digital asset space—delivering approximately 1,200% returns since inception. The firm, which manages roughly $35M in assets, attributes much of its longevity and stability to a fee model purpose-built for the volatility and opportunity of crypto markets: 0% management fee and a 35% performance fee denominated in BTC.

Bursera’s fee structure reflects a broader philosophical stance against the traditional 2 & 20 model. Rather than charging fixed fees regardless of performance, the firm only collects fees when profitable trades are made—aligning directly with investor interests. Investors retain 65% of all BTC generated through Bursera’s trading activity, while the firm receives 35%. This non-dilutive arrangement typically equates to a ~5% average USD-equivalent fee annually, offering a more sustainable and equitable alternative that protects investor capital and reduces operational bloat.

Bursera Capital manages one fund currently, whose mandate is systematic-relative-value-arbitrage—trading altcoins against Bitcoin in order to accumulate more of the latter. The portfolio is diversified across a range of 10 to 30 carefully vetted and selected altcoins, with attention to the sectors the assets fall under, including security, dApps, currency, and utility tokens, among others.

The team includes CEO and Fund Manager Nolan Foster, who brings over a decade of dedicated digital asset experience, and Chief Data Officer Diego SuCheang, a veteran developer with 15 years of technical experience and 10 years in crypto markets. COO Jeffrey Rodriguez leads operational strategy, while President of Client Services Chris Milewski focuses on investor communication and growth. The firm is further supported by a global advisory board and institutional-grade infrastructure, including legal, tax, and audit partners.

____________

$10M Multi-Strategy Hedge Fund Launches with 31% Annualized Returns

Atomic Digital, a newly launched market-neutral hedge fund, has officially entered the public spotlight as one of the more closely followed entrants in the digital asset space.

The firm debuts with a market-neutral, multi-strategy mandate designed to generate consistent, risk-adjusted returns across a range of market conditions. Its flagship vehicle, the Atomic Digital Market Neutral Fund, utilizes a diversified approach spanning OTC structured products, DeFi, quantitative trading, and digital credit markets.

Backed by a two-year live track record, the fund formally launched in April 2025 with $10M in initial capital. Since inception, it has delivered an annualized return of 31% with a Sharpe ratio above 4. In November alone, the fund posted a 1.98% return—momentum that has begun to draw notable allocator interest.

Beyond the flagship fund, Atomic Digital offers separately managed accounts and supports both Bitcoin- and Gold-denominated share classes within its main vehicle. The firm operates across London and Dubai with a team of seven, whose backgrounds span leading crypto hedge funds, proprietary trading firms, and traditional finance institutions.

____________

____________

🍿 Blockchain Bytes 🍿

• CMT Digital raises $136M for its fourth venture fund, drawing capital from family offices, high-net-worth individuals, and select institutions. The raise came in $14M short of its original $150M target (Fortune)

• Stream Finance, an onchain hedge fund that once managed $500M, is shutting down after disclosing a $93M loss tied to an external fund manager overseeing Stream fund assets (X.com)

• Triple Point Strategy launched the Marietta DeFi Fund, its first multi-strategy crypto vehicle, with an initial $10M target and a raise oversubscribed by more than 200% (Triple Point Strategy)

• RockawayX, a crypto asset manager with venture and DeFi liquidity strategies, has surpassed $2B in AUM since its launch in 2018 (RockawayX).

• Tyr Capital, a multi-strategy crypto fund that managed $250M at its peak before the FTX collapse, is entering the prediction markets space and seeking to partner with a prediction markets trader (Tyr Capital)

• Reforge, a venture firm founded by former Shima Capital senior hires, raised $25M toward its $80M Fund I target to invest in programmable money infrastructure and applications (Bloomberg)

• Breed VC held the first close of its Fund II, raising $13.58M from 51 investors, with the fund still open and following a Fund I that backed five unicorns including Monad, Ethena, Usual, and Plume (Venture Capital Journal)

• Olivia Nyugen has left Outerlands Capital, a quantamental crypto hedge fund, to join Epic Funds as Head of Growth, where she’ll focus on helping clients access niche opportunities through primary fund and co-investments; it remains unclear if the firm is actively exploring digital asset funds (Epic Funds)

• Arkangel Fund SP has been launched by institutional digital asset manager CV5 Capital, with Arkangel Wealth Management leading the investment strategy. The fund uses a systematic, market-neutral approach to capture short-lived inefficiencies through high-frequency, low-latency models and aims to maintain near-zero net beta (CV5 Capital)

• Hilbert Group secured a strategic allocation to its Basis+ Strategy from a $25B+ institutional investor, validating its institutional-grade platform amid strong 2025 performance with +30% USD and +24% BTC YTD returns and a 4+ Sharpe ratio (Hilbert Group)

_{Disclaimer: The information provided in this newsletter is for general informational purposes only. The information provided in this newsletter is not intended to solicit any type of investment. It is not intended to be a substitute for professional advice, and you should not rely on it as such. Any action you take based on the information presented is at your own risk. We make no representation or warranty, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the newsletter or the information, products, services, or related graphics contained on the newsletter for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this newsletter.}