BitBull Capital offers investors direct, early-stage access to crypto projects through its new Alpha Fund, and market-neutral DeFi Yield Farming returns through its new Yield Fund.
BitBull Capital, which has pioneered innovative crypto hedge fund strategies since 2017, has introduced two new funds that aim to offer innovative crypto hedge fund strategies to institutional, family office, and accredited investors.
“With the pace at which crypto has evolved, accredited and institutional investors continue to seek exposure to diverse opportunities in the space, ranging from gaming/metaverse projects to yield-generating activities in the DeFi sphere,” said Joe DiPasquale, CEO of BitBull Capital. “Our new funds are designed to meet these needs.”
BitBull now offers three funds:
In 2017, BitBull launched BitBull Fund, the world’s first crypto hedge fund of funds, per SEC records. The strategy was a result of its founders, Joe DiPasquale and Sarah Bergstrand’s belief that active management in crypto could outperform a buy-and-hold Bitcoin strategy. In 2021, BitBull Fund outperformed Bitcoin, with results one investor described as “dazzling.”
Its diversity of fund managers and strategies has led BitBull Fund’s investors to have allocations to many of the blockchain and crypto unicorns and multi-$B exits, many of which returned 50-100x. BitBull Fund captured a private equity allocation in companies like Coinbase at a $1.7B valuation (with an exit at over $80B), and an angel and venture capital allocation in Mythical Games in 2018 that grew 100x to its current valuation of over $1B. Other early-stage investors in Mythical Games include Fidelity Investments and Andreesen Horowitz. The Fund was also invested pre-launch in early crypto assets including Polkadot, Filecoin, and dFinity.
BitBull Alpha Fund:
BitBull Alpha Fund was created to leverage its knowledge from running its fund of funds for over 4 years and investing in over 10 other crypto hedge funds.
The Alpha Fund is BitBull Capital’s most nimble fund, positioning investors to enter – and exit – assets quickly while also providing direct access to early-stage opportunistic deals. Through Alpha Fund investors can gain seed-round stage investment opportunities in both Layer 1 (L1) and Layer 2 (L2) crypto solutions, for example.
Moreover, from cross-chain interoperability solutions like Cosmos to decentralized exchanges like 1inch (now the biggest dApp in decentralized finance by far, and one BitBull has been invested in since the project’s earliest days), the Alpha Fund is guided by the same approach as BitBull’s Fund of Funds: to identify – and invest in – unicorns in cutting-edge crypto verticals while still aiming to outperform BTC.
BitBull Yield Fund:
For investors on the other side of the risk spectrum seeking to limit their exposure to crypto market volatility, BitBull has launched the Yield Fund, a market-neutral fund which aims to generate strong yields by investing stablecoins into innovative DeFi products, and via strategies like lending and staking. The fund also has the latitude to pursue other market-neutral strategies such as market making and arbitrage.
The fund was borne from its founders’ experience holding cash at a bank account that returned 0.01% per year. BitBull’s Yield Fund aims to work with investors, including corporate treasuries, who want the steadiness of stablecoins like USDC, which is pegged to the dollar, with a yield return aimed at 15%-20% per year, which is 1500-2000x higher than that bank’s interest rate.
The Yield Fund is especially designed for institutional investors and corporate treasuries. Much like the company does with its two other funds, BitBull Capital brings to the Yield Fund a successful track record, with experience privately investing corporate treasury cash to return 20% per year annualized on USDC.
One of the biggest risks when yield farming within the crypto market is impermanent loss, a phrase that describes when the value of an investor’s funds decrease while being held within a yield farming mechanism. By using stablecoins tied to the US dollar, BitBull’s Yield Fund helps corporate treasuries or individuals leery of crypto asset volatility to still take advantage of yield opportunities, by depositing — and earning yield from — stable assets.
Normally, an investor deposits funds while agreeing to lock up the funds for a certain period of time, and during this time the funds can be used as collateral for offering loans to other parties. This lending is facilitated using smart contracts. Often, investors can earn yield in addition to more cryptocurrency tokens when depositing funds.
These two new Funds introduced by BitBull Capital continue in the way of the company’s premier offering, the Fund of Funds, where an actively-managed and experienced team continue to pave the way for accredited and institutional investors to take investment positions within the crypto market significantly customized to their individual risk-tolerance.
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