Other industry highlights:

• Off the Chain Capital Mulls $50M GP Stakes Fund

• First Investor in Movement Labs Launches $10M VC Fund

• Re7 Capital Seeks to Raise Additional $50M for High-Conviction Liquid Token Fund

…but first let’s raise a glass to this month’s sponsor 🥂

^{🗞 Allocator Developments 🗞}

$5.8B Investment Firm Launches two Crypto FoFs — Accolade Partners, one of the most active FoFs in crypto, raises $135M split between two investment vehicles: Blockchain III Venture and Blockchain III Seed. Previous investments include: a16zcrypto, ParaFi Capital & Framework.

FO & Alternatives Platform Appoints First Hire — Peter Teneriello joins Pomifer Capital as Director to build out its private markets investment platform that invests in PE & VC funds. Juan Diego Briceño, Founder and CIO of Pomifer, previously worked at Sigma Capital, a SFO based in the Dominican Republic.

Crypto Foundations Back $100M DePIN fund — Peaq, Solana Foundation, IoTeX allocate to Borderless Capital’s third DePIN fund. Jump Crypto was also an investor in the fund.

Multi-Strategy Firm Scales Allocation with Crypto Partner — MCD Capital, a multi-strategy investment management firm based in London, has collaborated with ARB Trading Group to optimize and scale its existing portfolio. ARB Trading Group is a proprietary trading firm with a crypto trading division known as Credo Ventures.

Decade Old $40M Quant Fund Allocating to Quant Traders — Mitchell Dong, founder of one of the oldest quant trading hedge funds, Pythagoras Investment Management LLC, is seeking to invest in and/or hire “talented crypto traders”.

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🔥 What’s Hot in Crypto 🔥

Off the Chain Capital Mulls $50M GP Stakes Fund

Off the Chain Capital (OTCC) is considering launching a closed-end investment fund to acquire General Partnership (GP) stakes in leading digital asset funds, as announced in an email from OTCC in early August. The firm has identified an estimated $50M in available capacity for this venture.

OTCC sees two key benefits to launching this fund. First, the GP stakes acquired could increase in value as the funds managed under these stakes grow and their assets under management (AUM) rise. Second, in profitable years, the funds would pay incentive allocations to the GP, and the fund would receive distributions when these allocations are paid.

Founded in 2016, by Brian Estes as a family office, OTCC closed a $160M fund in 2021 aimed at outperforming Bitcoin with lower volatility, focusing on special situation opportunities like acquiring Mt. Gox bankruptcy claims at a discount. The firm also engages in private equity deals with exposure to companies such as Coinbase, Kraken, DCG, Polychain Capital, and BitPay.

According to its website, OTCC’s team includes 11 people, comprising advisors and employees. Notable advisors include Olaf Carlson-Wee, Founder & CIO of Polychain Capital, Matthew Roszak, Chairman & Co-Founder of Bloq, and Rob Kauffman, Former Founder of Fortress Investment Group.

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First Investor in Movement Labs Launches $10M VC Fund

Third Earth Capital, a solo-run crypto investment firm founded by William Patterson, is nearing the close of its inaugural $10M pre-seed investment fund, with $7M already committed. The fund takes a generalist approach to crypto investing but sets itself apart by targeting opportunities that bridge the gap for non-crypto natives.

Currently, Third Earth Capital specializes in pre-seed investments, typically deploying between $150,000 and $300,000 per deal. However, as the firm grows, it plans to scale its investments to include larger deals.

Will’s experience provides him with a unique edge, allowing him to understand the crypto ecosystem through a “TradFi lens.” His background includes roles as an Investment Banking Analyst at Greentech Capital Advisors, Ecosystem Development at Ava Labs, and Head of Venture at Varys Capital.

Third Earth Capital has invested in 10 deals from its fund. Notably, Will's track record includes being the first investor in Nirvana Labs, LEVR.bet, and Movement Labs, where he played a key role in advising on BD strategy.

Notably, one of Third Earth Capital’s earliest investors includes Emin Gün Sirer, the founder of Avalanche.

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Re7 Capital Seeks to Raise Additional $50M for High-Conviction Liquid Token Fund

Re7 Capital, a digital asset investment group specializing in DeFi yield, liquid alpha strategies, and on-chain risk curation, has expanded its team to over 13 members. The group manages over $300M in assets and continues to innovate through Re7 Labs, which leads in vault management and advanced risk curation lending strategies within DeFi.

A key focus for Re7 Capital is its Liquid Token Fund, a high-conviction, concentrated vehicle targeting mid-cap and small-cap tokens with strong product-market fit, revenue generation, and adoption.

Over the years, Re7 has built an ecosystem as both a strategic operator and investor in DeFi, providing liquidity and coverage to hundreds of protocols. Leveraging fundamental analysis and proprietary valuation models, the firm develops strong investment theses and builds conviction around selected projects. Re7 is now raising an additional $50M to scale this strategy, which has been successfully running for over 15 months.

The Liquid Token Fund is designed to outperform market beta and deliver venture-style returns, offering more liquidity and shorter cycles than traditional, longer-dated VC vehicles.

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🍿 Blockchain Bytes 🍿

• Algoz, a quant trading firm, is now managing over 40 SMAs and is expected to reach $40M AUM by the end of Q3, with projections of $100M by the end of Q4 – Their machine learning-based flagship strategy, AiQuant Pro has gained +20% YTD, with an annualized Sharpe ratio exceeding 3.5 (Algoz)

• Of 51 liquid funds with over $3B in AUM, 52% reported monthly inflows, mostly under $1M, with only 12% receiving between $1M and $10M — Powered by Crypto Insights Group (CIG)

• Ivan Ripamonti, Web3 investment veteran and former crypto FoF’s investor, launches MV Global Opportunity Fund — Targeting absolute returns via investments in liquid and semi-liquid digital assets and SAFTs (Ivan Ripamonti)

• Dragonfly Capital is raising its fourth fund, a $500M crypto venture fund focusing on early-stage investments in blockchain startups and decentralized finance (DeFi) projects (Bloomberg)

• $830M AUM CoinFund grows team with three new investors for early-stage seed and ventures funds — Announces new Head of BD & IR (PR Newswire)

• $1.7B BlockTower Capital Advisors hires veteran technology executive Samuel Gaer as a senior co-portfolio manager for its flagship liquid trading strategy (TradingView)

• LM5 Capital has launched the Gemini Fund, an extension of its successful Fund A—a delta-neutral strategy that delivered a 34.6% return in its first year of trading (LM5 Capital)

• Framework Ventures, a +$670M crypto VC, is raising its fourth fund — According to recent SEC filings, Framework Ventures IV L.P., has not raised funds, yet, but an anonymous source close to the launch tells CFW the fund is “expected to hit the market within the next three months” (VCWire.Tech)

• OP Crypto, $100M crypto VC and FoF, LPs vote for controlled wind down after founder’s mysterious disappearance to China — The fund was backed by notable names: Bill Ackman, Alan Howard & Galaxy (Fortune)

• Hack VC raises $77M for its third fund with additional commitments over its initial goal of $80M — Hack’s first fund lost money, while their second fund has so far received a net return of $150% (Fortune)

There’s way more alpha than we can squeeze into a single CFW issue. Catch all the extra insights on our new LinkedIn page!

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