COSIMO Ventures Launches Risk-Managed Digital Yield Fund Focused on Staking
COSIMO sees opportunity in an investment strategy seeking yield* through staking protocol token accrual with a hedging capability
BOSTON & DUBLIN — September 13, 2022 — COSIMO Ventures (“COSIMO”), the venture capital investment firm that launched one of the world’s first tokenized, evergreen venture funds which provides investors access to high-potential blockchain projects, announces the launch of its latest investment vehicle, COSIMO Y. The risk-managed digital yield* fund is designed to provide a turnkey solution for institutions and investors seeking token yield uncorrelated to traditional markets with a risk-managed approach. COSIMO is targeting a $200MM capital raise.
The launch of the fund comes on the precipice of an important inflection point for cryptocurrency as investors anticipate an Ethereum merge, which will transition the second largest cryptocurrency, by market capitalization, from a proof-of-work to a proof-of-stake network. Staking is a process that helps secure a cryptocurrency network and receives that protocol’s coins as a reward. It offers a way of generating yield from a cryptocurrency with annual rates that could potentially outpace traditional fixed income products, while aiding the efficacy of the blockchain network itself. COSIMO intends to execute a best-in-class investment process working with institutional grade partners.
“We are extremely excited to launch such an innovative fund at a time in the market where investors are searching for ways to diversify their portfolios through a risk-managed strategy,” said COSIMO Ventures Managing Partner Rob Frasca. “Risk-managed exposure to increasingly popular proof-of-stake networks opens up a new avenue for investors seeking to complement their portfolio with access to the world-changing technology and potential of crypto.”
Unlike other digital asset funds that implement tactics like liquidity pool mining and yield farming, COSIMO Y will invest in a diversified group of PoS networks and use derivative products to help hedge risk. The fund will seek to accrue tokens on a predictable basis, benefit from price appreciation, and mitigate losses through hedging strategies. This multi-strategy approach provides options for investors seeking aggressive, moderate or conservative exposure.
This release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. For more information about COSIMO and the new COSIMO Y fund, visit cosimoy.com.
About COSIMO Ventures
COSIMO Ventures is a venture capital firm focused on investing in and providing access to emerging blockchain technologies through one of the world’s first tokenized evergreen funds, COSIMO X, and its risk-managed digital yield fund, COSIMO Y, utilizing proof of stake networks for risk-managed exposure to crypto markets. Founded in 2014, with offices in Boston, New York and Dublin, COSIMO Ventures is a pioneer in the next wave of digital disruption. The firm invests globally in high-profile blockchain, crypto and deep technologies.
Forward Looking Statements
This release contains forward-looking statements, including but not limited to statements relating to Cosimo’s expectations regarding a proposed securities offering and the anticipated structure, operation and performance of Cosimo Y. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. You are urged not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, risks and uncertainties related to the proposed securities offering or the anticipated structure, operation or performance of Cosimo Y and any potential return. Cosimo undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in Cosimo’s expectations.
*Yield refers to the new coins periodically received as a reward for staking the original coins. The new coins make up the numerator and the original coins constitute the denominator producing a percentage ‘yield’.
Gregory FCA for COSIMO Ventures