Digital assets investment solutions specialist Block Asset Management (BAM) has launched a new multi-manager hedge fund designed to generate decorrelated alpha from digital assets markets while maintaining robust downside protection, according to a report by International Advisor.
Initially launched in Malta, with a Luxembourg debut planned, the BAM Blockchain Alpha Fund (BAF) is open to institutional and qualified investors, requiring a minimum investment of $100,000 and offering monthly liquidity.
According to BAM, unlike traditional crypto investments, BAF employs a market-neutral, multi-strategy approach, exploiting structural inefficiencies, arbitrage opportunities, and mis-pricing across exchanges, assets, and trading strategies. The fund’s strategy is designed to produce consistent, risk-adjusted returns, uncorrelated with broader financial markets.
Back-tested data suggests the fund’s current asset allocation would have delivered a 12.9% annualised return since inception in January 2020, with 97% positive months (58 out of 60) and capital preservation during major crypto downturns.