Cayman Crypto Funds - Increasing Focus on NFTs, Tokens & DeFi Exchanges
Since the beginning of 2022 we have seen an increasing trend of fund managers launching crypto hedge funds with allocations to non-fungible tokens (NFTs). NFTs are unique cryptographic tokens that cannot be replicated. They can be used for a variety of transactions, financial and non-financial, and are expected to create new trading markets in the future.
Allocations to decentralized finance, or Defi, and yield farming has also increased, with funds increasingly building strategies that provide an alternative to money market funds with different risk appetites and lock-up terms.
It is important to seek advice when structuring your fund to ensure that service providers attached to the fund can value such assets, there is a valuation policy in place and no issues arise in terms of auditing the fund.
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