Ether has seen some troubled times this year in the crypto market, dropping down by 90% from the all-time highs that it once saw, much like the rest of the community. However, one person that formerly worked at ConsenSys, James Slazas, is launching a new ether fund to help drive in new profits, according to reports from The Block.
Slazas, who worked with ConsenSys as the head of capital markets, is now the creator of DARMA Capital. From DARMA Capital, Slazas has launched an ether fund called the DARMA Optimized Long-ETH Fund (DOL-ETH), offering long-term holders of the token the chance to get bigger returns.
All contributions to the fund happen in ether, and the goal that Slazas appears to have is that it will eventually outperform Ether with an active investment strategy. Quoted in a press release, Slazas said,
“After choosing fundamentally strong assets that have regulatory clarity, we apply an actively managed risk overlay strategy that is designed to dynamically hedge downside price exposure as well as reduce profit give-back at positive price extremes, with a net effect of creating alpha to our benchmarked digital asset.”
Realistically, the company is working to accumulate enough funding to reach $50 million for DARMA before the end of March. Overall, the AUM branch will grow further as new treasury services are established.
Though other crypto funds are planned in the future, Ether is the current target. In the same release, Slazas added,
“DARMA provides an institutional investment vehicle for digital asset investors. The interesting part is that a majority of our initial investors are crowd sale buyers and treasury management for token launched companies. This mix will shift over the next 12 to 18 months as scalability and adoption take hold and therefore lead to larger market caps and greater liquidity to support institutional-sized investments.”
Slazas has held down a three-decade career in finance, working for companies like Lehman Brothers, Healthcare Inside, and ConsenSys. Upon leaving ConsenSys, he first decided to work in a family office that dealt with digital asset trading, using many of the same strategies that DARMA is aiming to implement.
Considering the many shutdowns and layoffs associated with the crypto market right now, the launch of a long fund is “bold,” in the words of The Block. However, there has been multiple venture capital funds launched as well, like BlockTower Capital and Polychain Capital.
To outperform these potential competitors, DARMA is relying on the combined experience of their co-founders to drive them to success. Speaking with The Block, Slazas commented,
“When you look at all the other players out there, the service providers we’ve put together, registered with CFTC and taking that next step, this is what’s proper to bring a fund to the market. [I’ve] been involved in capital markets for 30+ years, [my brother, a co-founder] has quant trading analysis for 35+ years, this is nothing new for us. The performance will speak for itself.”