Valkyrie Investments, one of the largest cryptocurrency asset management companies, has announced that it will launch a so-called on-chain Defi fund next week. Because of the location of the assets that can be used to earn income in multiple agreements, the new fund will be very different from other similar products. US$100 million has been invested in this program.

Valkyrie launches on-chain Defi fund

Valkyrie Investment has Announce Yesterday they launched their first on-chain defi fund, which will hold a portfolio of defi blue chip stocks. The difference between this fund and similar products lies in the location of the fund.And other funds To passively track asset prices, Valkyrie proposes to put assets on the chain. This means they will be able to use them to earn income and passive income by positioning these assets in different agreements.

Wes Cowan, Valkyrie’s defi managing director, said:

This allows us to participate in the upside while also gaining additional benefits from bets in loans, liquidity pools, agriculture and defi ecosystems. We get the appreciation plus the compound rate of return generated by on-chain defi participation.

The fund will receive US$100 million in funding from several investors and general partners of the company.

Exotic chips and stablecoins

The decentralized financial environment is a huge and diverse movement that exists on multiple cryptocurrency chains. Although other investors mainly invest in established agreements such as Ethereum, Valkyrie’s proposal seems more risky. Cowan confirmed this when listing the chain stores the fund hopes to invest in. Cowan announced:

We have seen many opportunities on the blockchain, including Ethereum, Avalanche, Solana, Binance Smart Chain, Matic and Fantom.

Although mentioning this may not mean that they will invest in native tokens in these environments, it is interesting to mention some of these options and proves the growth of some of these chains. However, the composition of the investment portfolio, as to which tokens and the proportion they will hold, is still uncertain.

Cowen acknowledged that stablecoins may play an important role in the investment portfolio, adding:

Although even in stablecoins, they are always deployed on the chain to generate revenue.

The launch of the fund may trigger a trend that encourages other participants to deploy their assets on the chain to earn income through positioning, but it also brings new risks to those who invest in the fund.

What do you think of Valkyrie’s new on-chain defi fund? Tell us in the comments section below.

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