According to an SEC filing, top executives at investment and crypto trading firms Galaxy Digital and Genesis will launch a new cryptocurrency fund. They are looking to raise $500 million. Both trading firms are dealing with the collapse in crypto hedge fund Three Arrows Capital.
According to a Securities and Exchange Commission filing, leading executives from crypto trading and investment firms Galaxy Digital and Genesis have raised $500 million for a new crypto fund called DBA Crypto.
According to the new fund filing, the first sale of the fund has not yet occurred. Axios reported the news Monday.
DBA Crypto Fund I LP lists a powerful crypto trading team among its general partners. This includes Galaxy Digital’s cohead of investments Michael Jordan and Genesis’s head for derivatives Joshua Lim.
Also, Genesis’s former vice-president of trading Roshun Ptel and Shane Barratt who are CEO and founder of Convex Trading.
LinkedIn profile of Patel shows that he left Genesis in March.
Genesis Trading recently reshuffled its leadership. On August 17, Michael Moro, CEO, stepped down and Derar Islim, chief operating officer, stepped in as interim CEO.
Genesis’s recent losses were the reason Genesis’s leadership changed. The trading company lent \$2.36 million to the defunct crypto hedge-fund Three Arrows Capital (3AC).
Digital Currency Group (DCG), the parent company of the trading firm, stepped in to assume the firm’s obligations and filed a \$1.2 Billion claim against 3AC.
Galaxy Digital was also exposed to 3AC, and is listed as a creditor of the hedge fund. In its most recent quarterly earnings report, the investment firm reported a loss of $554million and recently ended a highly publicized acquisition of BitGo crypto custodian.
When The Block contacted Patel, Patel refused to comment on the fund. Galaxy Digital and Genesis did not immediately respond to requests for comment.