Nickel Digital Asset Management, a London-based digital assets hedge fund manager founded by Bankers Trust, Goldman Sachs, and JPMorgan alumni, says it is achieving significant outperformance during a wider recovery in the digital assets space.
Nickel Digital Asset Management (Nickel), a London-based digital assets hedge fund manager founded by Bankers Trust, Goldman Sachs, and JPMorgan alumni, says it is achieving significant outperformance during a wider recovery in the digital assets space.
New data shows Nickel’s DeFi Liquid Venture Fund has returned 62% net of fees in Q1 2023, nearly double the Bloomberg Galaxy DeFi index return of 34% over the same period. The outperformance is even starker against traditional finance indices, with FTSE-100 having returned 2% in the first three month son this year, and the S&P500 and Nasdaq Composite returninf 7% and 17% respectively.
Nickel’s DeFi Liquid Venture Fund is designed to capture structural growth of the broader digital assets space outside bitcoin, spotting early winners in Layer 1, Layer 2 protocols, and decentralised finance as the area of greatest financial innovation. The fund is an actively managed, research-driven vehicle aiming at identifying early winners and capturing structural expansion of this space.
The portfolio dynamically allocates to exchange-traded digital tokens based on their use cases, competitiveness, leadership position, liquidity criteria and a range of network related ratios.
Nickel says the fund’s success underlines the growing confidence in DeFi investment opportunities highlighted by a study the firm commissioned with 200 institutional investors and wealth managers across seven countries who collectively manage around $2.85 trillion in assets. The results revealed that 77% of institutional investors believe the investment opportunities in DeFi are becoming more attractive this year following the success of the sector during 2022 in face of high-profile failures in the wider digital assets market.
