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Key takeaways:

  • Valkyrie Investments is launching “On-Chain DeFi fund,” giving investors the ability to generate yield from decentralized finance use cases, including farming, staking, and lending
  • The $100 million came from accredited investors and Valkyrie’s general business partners
  • The new DeFi fund is slated to launch later this month

The institutional adoption of digital assets has picked up the pace over the past month. Proshares’ BITO, the first Bitcoin futures-based ETF, launched in mid-October. A leading cryptocurrency asset management firm Valkyrie Investments launched its Valkyrie Bitcoin Strategy Fund (BTF) shortly after that, on October 22. Now, Valkyrie has announced the launch of a new cryptocurrency fund that will be exclusively focused on the decentralized finance (DeFi) sector.

Valkyrie is launching a $100 million “on-chain DeFi fund” to provide exposure to the decentralized finance industry

The alternative asset management company offers several financial products to investors who wish to gain exposure to the cryptocurrency industry. Valkyrie offers six single-asset digital asset Trusts, which are based on Bitcoin (BTC), Polkadot (DOT), Algorand (ALGO), Dash (DASH), Tron (TRX), and Zilliqa (ZIL). In addition to the aforementioned crypto trusts, the company also offers a future-based Bitcoin exchange-traded fund (ETF). 

By introducing the new “On-Chain DeFi Fund,” Valkyrie is taking a page out of Galaxy Digital’s playbook, which has recently expanded its crypto offering with the addition of a DeFi Index Fund

As reported by Blockworks, Valkyrie’s DeFi Fund will allow investors to generate yield from various DeFi-centric use cases, including lending, farming, and staking. Wes Cowan, Valkyrie’s managing director of DeFi, told the financial news outlet that the new fund will incorporate decentralized protocols from 13 different blockchain projects, including Ethereum (ETH), Avalanche (AVAX), Solana (SOL), Binance Smart Chain (BSC), and Fantom (FTM). Cowan emphasized the benefits of the fund’s structure:

“This allows us to participate in the upside while also gaining additional yield from lending, liquidity pools, farming, and staking in the DeFi ecosystem. We get the appreciation plus the compounded yield generated from on-chain DeFi participation.”

Cowan went on to explain, “The fund was launched in response to demand from existing clients and investors, who also happen to make up the bulk of the launch funding.” Three quarters, or $75 million, of the funding, have already been secured by accredited US-based investors. 

Valkyrie’s DeFi fund is going live on November 22, 2021.

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