According to THE BLOCK, Hypersphere Ventures, a prominent crypto investment firm, has announced the opening of its recently launched liquid fund, Atlas, to external investors. The fund, which has already amassed $130 million in assets under management (AUM), aims to deliver substantial returns through diverse trading strategies.

Atlas: A Multi-Manager Liquid Fund

The Atlas fund is designed to achieve a 40% return by employing a variety of trading strategies, including decentralized finance (DeFi), quantitative trading, market making, and arbitrage. Additionally, Atlas provides co-investment opportunities into private treasury rounds, such as those in Toncoin (TON), according to Hypersphere founder Jack Platts. These co-investments are organized into private share classes, allowing existing investors to opt-in as per their preference.

Initially launched in January under stealth mode with a $100 million investment from Hypersphere's balance sheet, Atlas has since expanded to $130 million in AUM. The fund is now open to outside investors and, while there is no target amount to raise, Platts indicates the strategy can accommodate well over $300 million.

Benefits of Liquid Funds

Liquid funds like Atlas are gaining popularity among investors for their ability to generate quicker returns compared to traditional venture capital funds. Unlike venture funds, which are often tied up in illiquid assets with long lock-up periods and vesting schedules, liquid funds offer greater flexibility and ease of trading. According to a Galaxy Digital report, the total AUM of liquid crypto hedge funds surpassed $21 billion at the end of Q1 2024, a first since October 2022.

"We're crypto natives and we designed the Atlas fund for ourselves," Platts stated. "Atlas answers the question allocators have been asking: how do you design an investment product that captures crypto's eye-watering returns with less gut-wrenching volatility?"

Expanding Investment Strategies

Alongside Atlas, Hypersphere Ventures is planning to launch a new venture capital fund targeting early-stage crypto projects. The firm aims to raise $75 million for this new fund, with fundraising set to begin in the fall.

Hypersphere's track record includes three previous funds since its inception in 2020. The first two funds collectively generated over $600 million in profits from an initial investment of less than $50 million. The third fund, a $60 million venture fund, is still actively investing and has reported a 150% net increase so far.

Strengthening the Team

To bolster the management of its funds, Hypersphere has recently hired executives from high-frequency trading firm Millennium and hedge fund Bridgewater. Michael Friedlander, formerly of Millennium, has joined as chief operating officer and chief risk officer, assisting in the launch of Atlas. Luke Mazey, previously at Bridgewater, has been promoted to chief financial officer.