Block Asset Management (BAM), a leader in digital asset investment solutions, has unveiled the BAM Blockchain Alpha Fund (BAF), a multi-manager hedge fund tailored to capture decorrelated alpha from digital asset markets while ensuring robust downside protection.
Initially launched in Malta, the fund is set to debut in Luxembourg soon. It offers institutional and qualified investors a minimum investment of $100,000 with monthly liquidity, according to BAM’s official statement.
Innovative Market-Neutral Approach
The BAM Blockchain Alpha Fund is designed for investors seeking consistent, risk-adjusted returns that are uncorrelated with traditional financial markets. Unlike directional crypto investments, BAF adopts a market-neutral, multi-strategy approach, which focuses on identifying inefficiencies in the digital asset markets. By exploiting structural mispricing, arbitrage opportunities, and other inefficiencies across exchanges and assets, BAF aims to generate alpha irrespective of broader market conditions.
Backtested Performance and Proven Strategy
Based on backtested data, BAF has shown impressive historical performance. Since its inception in January 2020, the portfolio would have delivered an annualized return of 12.9%, with 97% of months posting positive returns (58 out of 60 months). This consistent risk-adjusted performance has provided capital protection during major downturns in the cryptocurrency markets.
Key Differentiators
BAM emphasized several differentiating factors that set BAF apart from traditional crypto investment vehicles. These include isolating alpha opportunities without relying on macroeconomic trends or market directionality. The fund is managed by a group of top-tier, institutional-grade investment teams, each executing proven, non-correlated strategies designed for low volatility, strong risk-adjusted returns, and minimal drawdowns—even in turbulent markets.
Manuel De Luque Muntaner, founder and CEO of Block Asset Management, stated, “With traditional asset classes experiencing yield compression and increased correlation, digital asset markets offer a rare, untapped source of alpha. BAF allows professional investors to access these opportunities while mitigating crypto-specific risks. Digital assets represent the first fresh alpha stream in decades.”
Institutional-Grade Structure
The BAM Blockchain Alpha Fund is structured to meet the demands of institutional investors, with its operations compliant with Luxembourg’s regulatory framework. The fund’s auditor is PwC (PricewaterhouseCoopers), while Swissquote Financial Services & Swissquote Bank Europe serve as the depositary and banking partner. The fund’s investment manager is AQA Capital Ltd, and its fund administrator is Fexserv Fund Services Ltd.
In conclusion, the BAM Blockchain Alpha Fund provides a highly specialized, low-volatility, and risk-managed approach to digital asset investing, making it a compelling option for institutional and qualified investors looking to navigate the rapidly evolving world of digital assets while protecting against market downturns.
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