UPDATE 2: The Blockforce Vesper DeFi Growth Fund Update

An update on the Blockforce Vesper DeFi Growth Fund.

First, to get the obvious matters out of the way — we’ve had to push back the ETA for the Blockforce Vesper DeFi Growth Fund by about 30 days to the early September timeframe. As much as we had hoped and planned to launch as of, well, now we believe the macro market conditions over the past few months combined with the late July recovery is a net positive to our updated timeframe.

Like Vesper, we at Blockforce Capital place a premium on executing with excellence and believe that Vespernauts deserve to be kept up-to-date. This is brand-new territory for us, but we’re pleased to see that the DeFi category is heading in a similar direction of cross-industry collaboration, with AAVE and Compound announcing offerings tailored to institutional investors. Vesper offers one of the most attractive value propositions for traditional financial investors to cross over into DeFi, and the founding team has a great reputation, so we have good tailwinds to attract investments from both sides of the bridge.

Here’s the latest:

  • Administration — It took us longer than expected to set up the fund entities (Offshore Feeder, Master Fund) in the Cayman Islands. Where a fund like ours is concerned, it would be ideal if things moved as quickly as crypto. The so-called “real world” moves a lot more slowly. So it goes.
  • Banking — Downstream from setting up the entities come the bank accounts. We are working with a bank that specializes in supporting crypto and DeFi businesses, which is great, but they acknowledge it’s taking longer than normal due to heavy demand for their services.
  • Participation — The vast majority of the potential participants we’ve talked to have been very enthusiastic about the fund. They see the energy around DeFi and view our fund as a way in that’s most compatible with their needs and experience. So much so, in fact, that we’ve decided to extend invitations for participation beyond the original group.

We provided initial guidance on the fund’s target allocation last month in Vesper’s discord channel.

WBTC: 30%

ETH: 25%

LINK: 5%

USDC: 30%

VSP: 10%

We are committed to the initial proposal, excited to be part of the community, and look forward to a long and successful partnership. The high-level points are summarized below:

  • 25% of the fund’s income from management and performance fees will be converted to VSP and sent to the vVSP pool for distribution among Vespernauts.
  • Vespernauts will be rolled into the fund’s investor reporting — this community will receive the same reporting as our accredited investors.

Looking forward, as always.

Eric Ervin

CEO, Blockforce Capital

Blockforce Capital is an innovative U.S. based asset management firm that offers investment products in the equity, blockchain, and cryptocurrency space through an array of public funds, private investment vehicles, and financial technology services.

*Blockforce Capital Management, LLC and its affiliates are furnishing this publication (this “Article”) to sophisticated current and prospective investors for informational purposes only in relation to existing or potential subscription in the Blockforce Multi-Strategy Fund and the Vesper DeFi Growth Fund. This is neither an offer to sell nor a solicitation to buy units or shares in any fund. Any such offer or solicitation will be made solely through definitive offering documents, identified as such, which will contain information about each fund’s investment objectives and terms and conditions of an investment and may also describe risks and tax information related to an investment therein and which qualifies in its entirety the information set forth in this Article. Interests in the Fund are exempt from registration under the Securities Act of 1933, as amended, and Regulation D promulgated thereunder, in accordance with the definitive offering materials. Investors should conduct their own assessment prior to making any investment and consult their own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability of an investment. An investment in the Blockforce Multi-Strategy Fund and in the Vesper DeFi Growth Fund involves significant risks, including entire loss of investment, and is suitable only for sophisticated accredited investors. Past performance does not guarantee future results.

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