Crypto VC firm Hypersphere has made a significant move in the cryptocurrency market by launching a new fund with $130 million in assets under management (AUM). The fund, named Atlas, aims to utilize Wall Street strategies to generate profits for investors in the crypto market. This announcement comes at a time when VC firms are increasingly participating in the market, driven by a bullish upswing in recent months.
The Atlas fund was unveiled by Hypersphere on July 10, with the goal of providing returns to investors in the crypto market. The fund will leverage Wall Street strategies and will be managed by a team with experience from trading firms Millennium and Bridgewater. The fund will employ a multi-management approach to minimize volatility and maximize returns for investors.
One of the key objectives of the Atlas fund is to provide a 40% return to clients by utilizing decentralized finance (DeFi) market making and arbitrage strategies. Additionally, clients will have the option to participate in co-investments in private treasury rounds. Hypersphere initially funded the Atlas fund with $100 million in January and has since released two broad strategies to allow investors to benefit from its liquid fund program.
Jack Platts, the founder of Hypersphere, emphasized that the fund’s strategy involves offering diversified trading methods and identifying attractive opportunities in the digital asset market. The increased market participation by crypto VC firms this year can be attributed to the bullish market sentiments, with some assets reaching all-time highs. The surge in prices and on-chain activities have attracted investors to the market.
In addition to the Atlas fund, Hypersphere has plans to launch another venture fund to support smaller crypto projects. The firm aims to raise $75 million for this project, which is expected to commence operations in the fall. This expansion indicates institutional support for the bullish trend in the crypto market, with several firms pointing to interest rate cuts by the Federal Reserve as a factor that could drive funds towards risky assets.
Overall, the announcement of the Atlas fund and the planned expansion by Hypersphere highlight the growing interest and investment in the cryptocurrency market by institutional players. With Wall Street strategies being adopted and a focus on generating returns for investors, Hypersphere’s move signals a positive outlook for the future of crypto investments.