Bitcoin has been called the best performing asset of the decade by some.
The fund has averaged 133% per year since its inception in 2016, compared to about 108% per year on average for bitcoin, according to Off the Chain.
It aims to buy one dollar’s worth of blockchain assets for 50 cents and make returns on the purchase of the assets, rather than buying them at fair market value and letting them rise.
For example, Off the Chain was a big buyer of shares of Mike Novogratz’s Galaxy Digital two years ago, which went for about 70 cents then, Estes said.
Silvergate Bank is another company being mispriced, according to Estes.
“It is our view that bitcoin is the winner of the store of value and is a major diversification instrument for portfolio allocators.
The fund currently has about 200 limited partners and $399 million under management.