- Summary:
- Galaxy Digital has teamed up with Genesis Trading to set up a new crypto fund. We tell you about it and the quest to raise $500 million.
According to a recent SEC filing, a team of ex-Galaxy Digital and Genesis Trading executives are seeking to raise $500 million to establish a new cryptocurrency investment fund. According to the SEC filing, DBA Crypto Fund I LP is the issuer of the fund. The fund has some notable names in the crypto space holding key positions.
Digital asset investment firm Galaxy Digital’s co-head of investments Michael Jordan, Genesis’s head of derivatives Joshua Lim, and Genesis’s previous vice president Roshun Patel are all named as general partners in DBA Crypto Fund I LP. Shane Barratt, who is also the founder and CEO of Convex Trading, was listed as both a managing member and an investing partner.
Where it went wrong for Galaxy Digital and Genesis Trading
Even though Galaxy Digital and Genesis Trading have both suffered significant losses in recent months, it is not obvious whether or not their current funding campaign aims to strengthen either company. Both companies have lately suffered significant losses as a result of the decline in the value of crypto assets and their exposure to Three Arrows Capital. Galaxy Digital also scrapped a high-profile plan to acquire cryptocurrency wallet provider, BitGo.
Genesis Trading has disclosed a $2.36 billion stake to failed cryptocurrency hedge firm Three Arrows Capital. However, Galaxy Digital’s most recent quarterly earnings report showed a loss of $554 million. It appears that limited partnerships are willing to give some investors a second opportunity in the blockchain space despite the bear market and crypto crisis that has plagued the industry this year.
The cryptocurrency market has been underperforming for the better part of 2022, which has had a negative impact on investor confidence. In light of this, a successful effort by the former CEOs to raise $500 million despite the current bear market would be beneficial for boosting investor confidence.