ConsenSys’s Andrew Keys Moves to Ethereum-Focused DARMA Crypto-Centric Investment Fund
The desire to bring institutional funds into the cryptocurrency market is a long-running one as it is believed to be one of the crucial steps needed to gain mainstream adoption and also to take the industry to the global stage that it needs to be.
This has led to many crypto-centric business people dipping their toes into institutional firms in order to gain either more experience, more acceptance or more support from them and the latest of these to do so is Andrew Keys, who is the co-founder of ConsenSys capital.
Keys has announced that he will be the newest managing partner at DARMA capital and will be working to drive product strategy and global business development. He is not the first alum of ConsenSys who will be joining the firm as James Lazarus, the former head of capital at ConsenSys, is also at the firm.
DARMA stands for Digital Asset Risk Management Advisors and is a CTF-regulated firm and a member of the National Futures Association. They also have $100 million in assets under their management and that is allocated to their ether optimizing long fund. The fund works by accumulating more ether as time passes and generating a return for the investor funds that have been put in it.
It is a very ambitious project and Keys has stated that his goal is to accumulate 1% of the total funds each month. He did clarify that this is not the same thing as hodling and this is because most investors who have witnessed the most recent bear market in the industry don't want to hodl. Instead, he is trying to create an active return on investment.
For now, the first biggest focus is their ether fund though there are plans to launch a Bitcoin fund the coming months and another fund late later this year.
“We believe [those tokens] will be the components of the next-generation internet and essentially there is a new asset class in what I would call crypto commodities. So we’re not interested at the application layer, we’re interested in the protocols that many different applications will use,” said keys.
Working Both Sides
Though Keys is focused on his role at DARMA, he has stated that he is not abandoning ConsenSys capital in any capacity and will remain on as an advisor. Beyond this, DARMA will be making use of ConsenSys software and will be working closely with them.
It is worth noting that ConsenSys is also an investor in DARMA and Keys has stated that the shift is compatible with his personal interest as his core competency has been in finance and his second competency is technology, with both complementing each other.
“There’s a void in the market, and this is a simple solution and I think a necessary missing piece of the market,” he said.
“I think the investment stage, if you look at the PwC blockchain hedge fund report, over 70 percent of them have less than $10 million assets under management, half of them don’t use a custodian and it’s very immature. We have $100 [million] AUM, we have one of the best custodians in Opus, we have KPMG as an auditor.”