A new crypto hedge fund, collaboratively launched by BlockSpaceForce and Mainnet Capital, aims to amass $100 million in assets under management, reflecting growing institutional interest in digital asset investment vehicles. Established in Singapore, the fund intends to build a diversified portfolio that concentrates on crypto-linked equities and treasury assets, often referred to as digital asset treasuries (DATs). Announced in early September 2025, this initiative underscores a regional and global trend toward formalizing crypto asset management within regulatory frameworks that support institutional participation. The fund is exclusively open to institutional investors and accredited investors, ensuring compliance with regulatory standards. This approach reflects a broader market movement where altcoins and related assets gain traction through utility and innovation, influencing institutional strategies.
BlockSpaceForce and Mainnet Capital launch a $100M Singapore-based crypto hedge fund focused on equities and digital asset treasuries.
The fund’s investment focus centers on “blockstocks,” a category that includes pure-play crypto companies, traditional firms with significant crypto exposure, and entities holding digital asset treasuries. Early portfolio selections include Kindy MD, SharpLink Gaming, SUI Group Holdings, CEA Industries, and FGNexus, highlighting a preference for companies actively engineering crypto-related products rather than simply holding cryptocurrencies. The treasury assets targeted primarily encompass tokens linked to Bitcoin, Ethereum, Chainlink, and Solana, allowing the fund to balance liquid equity positions with more stable digital asset holdings. This hybrid approach aims to optimize risk-adjusted returns through thematic exposure. The fund is structured as an evergreen, open-ended investment to enable continuous capital raising and strategic pivots.
Strategically, the fund adopts a thematic approach by focusing on waves of opportunity within the crypto sector. Currently emphasizing DATs, it plans to diversify further by investing in upcoming initial public offerings and distressed infrastructure assets. The fund’s management acknowledges recent market volatility has negatively affected some portfolio equities, reflecting broader sector weaknesses. Plans to integrate cryptocurrency payment options into associated network platforms by the end of 2025 illustrate a commitment to innovation, while the combined strategy of public equity investment and treasury management seeks to mitigate concentrated risks. This reflects the ongoing evolutionary pressures altcoins face, requiring adaptability to survive and thrive amid market fluctuations.
This launch aligns with an increasing institutional appetite for crypto hedge funds and alternative asset classes amid projections of substantial growth in blockchain and AI markets through 2029. Operating within Singapore’s progressive regulatory environment, the fund benefits from formal licensing through Mainnet Capital, enabling robust governance frameworks. Nonetheless, inherent risks persist given the volatility of cryptocurrency markets, which could impact portfolio valuations and operational prospects. Moreover, the fund must navigate complex legal and regulatory implications that accompany altcoin-related investments to maintain compliance and investor trust.
