Digital Asset Capital Management

Some years back I thought protocols like $MKR could evolve into a new type of low-friction “warehouse facility” for tradfi. The key constraints were: stablecoin scale, credible RWA tokenisation systemns/pipelines and likely compliance roadblocks in tradfi. Think all of these have advanced materially. From our discussions/pipeline, corporates and VCs are actively exploring and some already building defi markets as the yield layers on cash floats or end markets for asset leverage. $MORPHO and probably $AAVE seem well placed but these addressable markets are vast. Its very early/uncertain but even marginal market share capture from traditional funding channels would drive a step-function growth in defi tvl.

I compared them all 2 years ago: Delta Neutrals as of 2023: @FasanaraDigital had the best stats and tail risk @DigiAssetFund had an almost identical performance but got unlucky with something around FTX. If you removed that event they had almost identical performance and tail exposure. @Re7Capital was also extremely good as of 2023. Side note: @LanternVentures Pharos Fund had the best tail risk hedge of them all. It's a delta neutral with a small yolo side-pocket that lets them do directional special situations.

Three things in crypto generate $10bn+ cashflow: - Binance; - Tether; and - Derivatives basis. Only one was available to capture - was great to talk to @gdog97_ and here him explain how $ENA does it 👇 1 min short: youtu.be/cCH4_TGgaFY

DACM is excited to back @OstiumLabs in their Series A. The global CFD market is huge - over $10T a month - yet still runs on outdated, opaque infrastructure that too often trades against its users. We invested because Ostium is rebuilding this stack from the ground up - delivering a fairer, more transparent, and better trading experience. Ostium's oracle-driven, RFQ-based perps pull pricing and liquidity directly from the underlying markets, avoiding the fragmented on-chain exchange layer and enabling the tightest execution at size, anywhere onchain. We have huge confidence in @kaledora and the team. Excited to watch them continue to scale Ostium into the category leader.

Dapps are 60%+ of crypto’s revenue yet only 7% of its market value. This is the same ratio as when dapps earned nothing. Majority of sector revenue, all the growth...repricing feels inevitable.

Always great to talk to Raoul - this is one of the hardest crypto markets to get your head around but tried to cover a lot of it here. Also talk through the protocol->app rerating opportunity which we think is the most compelling thematic in crypto on a 3+ year view.

CIG’s 4Q25 Digital Asset Fund Outlook Magazine is officially live! This quarter, leading fund managers and allocators provided long-form views on the industry's most pressing buyside topics. Access the full report here: cryptoinsightsgroup.com/insights/4q25-…

SOL Strategies filed to raise $1bn yesterday - so another potential $1bn treasury vehicle buyer of $SOL. If both this raise and the DFDV raise I mentioned below complete, thats $2bn of aggregate SOL buying. To help put in perspective how material this could be, it's the equivalent of Saylor buying $46bn of BTC... solstrategies.io/sol-strategies…

Wow...nice report - very helpful to understanding $GRASS business model and potential economics👇

Wow - $GRASS has effectively confirmed it’s selling data, at scale, to major LLM players citing “mid 8-figure revenue.” Based on it's latest daily scrape volume (entirely demand-driven) and pricing - assuming 90% cheaper than the lowest-cost residential proxies at scale - we estimate “mid 8 figures” likely means $50m+ in revenue. h/t to @Delphi_Digital with a quality alpha drop to members here

Great to sit down with @RaoulGMI again at such an interesting time in crypto. We spoke a lot about DACM's focus on the (undervalued) crypto app layer and a whole bunch of other stuff including the acceleration (and inevitability) of the crypto/ai overlap, the effectiveness of depin to build physical networks at incredible speeds and some new trends we are seeing in the VC fund raising market. Enjoy!

First DEX with native BTC -> SOL swaps - how crypto should be 🙏

Even bigger and better than last year! @token2049 truly best all-round crypto conference globally - awesome to be back on stage again this year talking macro and crypto with @krugermacro and @dariussitzl with @DTAPCAP leading the way Looking forward to 2025 already 🙏

In a market where we have struggled to find really new/different things, Rise is a stand-out. Excited to be along for the journey.

1/ Introducing RISE, the Gigagas Layer 2! We’re excited to announce our $3.2M seed round! The round is led by @FinalityCap and joined by @OrangeDAOxyz @DigiAssetFund @ether_fi @PolygonVentures @mhventures and @publicworksfm as well as several notable angel investors. This is just the beginning. The Gigagas Era is here.

Don’t miss @richwgalvin at #TOKEN2049 Singapore. Richard, Executive Chairman and CIO of @DigiAssetFund, leads a firm that provides focused, transparent, and professionally managed investment into the world’s fastest growing asset class – digital assets. See you in two weeks!

We are going live in 30 minutes! 🎙️ Join us to dive into how @BCW_llc, @DigiAssetFund, and @PierTwo_com are contributing to the @NEARProtocol ecosystem ⛓️ x.com/i/spaces/1MYxN…

SAFE another defi protocol punching-out new ATHs across a bunch of metrics. This is a good overview - key takeaways for us: Adoption rate strong - Safe txn share as % of all EVM continues to grow -> was 0.7% of all txns in Q2 2023, now 2.7% Q2 2024 Monthly active accounts up nearly 70% QoQ, avg. of 2.7m per month in Q2 (mostly driven by worldcoin) Highest TVL ecosystem across EVM - eyewatering $65bn custodied, including $4.5bn in native coins, $6.7bn in stables, $54bn in ERC-20s Near term monetization opportunities include charging for services such as native swaps ($150m last month and growing) and clipping staking modules (ETH and stablecoin yield relevant here) imo...good time to find established, well capitalised projects with solid near term revenue opportunities and sticky users messari.io/report/state-o… via @MessariCrypto

New highs re borrowers on AAVE, dapps continuing to keep up their end of the bargain. Tokens not so much...yet