In the rapidly evolving world of blockchain and digital assets, traditional asset management practices face a significant challenge: how to bring the same level of professionalism, expertise, and client protection to this new asset class.
In response to this challenge, Etherbridge, a digital asset-focused team, embarked on a quest to find a partner, capable of navigating the complexities of the digital asset landscape while ensuring client protection. This case study delves into the partnership between Lima Capital LLC (Lima) and Etherbridge and explores how the fund successfully transformed into a sustainable entity.
The Genesis of Etherbridge
In 2019, Etherbridge embarked on a mission to leverage the disruptive potential of public blockchain technology and establish traditional service standards within the emerging field of digital asset management. The high-conviction, actively managed digital asset fund is managed by an experienced team of industry-specific experts, with the goal of consistently delivering uncorrelated excess returns over time. To achieve this, they are investing across the core themes of digital assets and are supported by best-in-class service providers. The challenges were evident in this endeavor.
· Limited expertise available to ensure comprehensive client protection.
· The need to adapt traditional investment management practices to this new and rapidly changing asset class.
· A desire to find a partner capable of maintaining the same high standards of traditional investment products in the crypto world.
Enter Lima: A Strategic Partnership
Etherbridge’s search for a partner led them to Lima, a regulated Investment Advisor and Collective Investment Scheme (CIS) Manager, with a proven track record in solving complex structuring problems and adapting to new asset classes. Lima offered precisely what Etherbridge was looking for:
Traditional Expertise with Crypto Adaptation:
Lima Capital possessed the rare combination of traditional investment management competence and the ability to adapt to the nuances of digital asset management. This ensured that Etherbridge’s clients could enjoy the same level of protection as traditional investment products.
Operating Model Creation: Lima played a pivotal role in creating the entire operating model for Etherbridge, from A to Z.
Custody Arrangements: Lima successfully addressed the challenge of segregating client assets by using a traditional custodian and banking partner; a critical concern in this space.
Daily Net Asset Value Calculations: Through one of Lima’s partners, it allowed Etherbridge to offer daily liquidity and valuations, a significant competitive advantage in the digital asset fund market.
Hands-On Support: This encompassed tasks such as disseminating data on platforms, generating performance reports, hosting investment committee meetings, conducting audits, managing compliance reporting, and producing factsheets. These proactive measuresaddressed potential problems and risks, allowing Etherbridge to maintain its focus on its core role of making quality investments.
The partnership between Lima Capital and Etherbridge has been transformative:
· Starting from ground zero, Etherbridge has evolved into a sustainable digital asset fund.
· Lima’s role has transcended that of a service provider, establishing them as a trusted partner throughout Etherbridge’s journey.
· Etherbridge now operates with the confidence that client interests are well-protected, thanks to Lima’s innovative solutions and vigilant risk management.
· This partnership has also allowed Etherbridge to diversify its focus, not only managing investments but also engaging in research and development and education, as demonstrated through its newsletter releases.
With a solid 3-year track record in the digital asset fund landscape, a commendable achievement considering the market’s price volatility. Lima’s ability to blend traditional investment management practices with digital asset adaptation; has ensured that the fund can offer its clients the best of both worlds – the excitement of digital asset investments, with the security of traditional corporate governance protocols. If you are interested in learning more, simply fill out the form here. Take the first step towards a dynamic and secure investment future today.