Core Macro Exposure
- Our macro strategy consists of our long-term, core holdings. We own dominant digital assets to capture appreciate from migration from traditional to digital assets
- Exposure consists of yield producing proof of stake tokens, Layer 1, smart contract protocols, Layer 2 protocols, decentralized finance networks, Web3 applications and other dominant sectors.
Tactical Long-Only Themes
- BXE has identified certain themes that we believe will produce network monetization or value realization in the intermediate term
- We own the “picks and shovel” base line networks which we believe will power the digital economy buildout.
- We employ multiple yield generating strategies with an aim of reducing monthly management fees
- We seek to produce positive carry by providing liquidity, proof-of-stake, or other means of value to the digital asset ecosystem
- We believe that by seeking to produce yield, we may be able to reduce mark-to-market price volatility and help lessen the impact of portfolio drawdowns.
- BXE believes event-driven situations repeatedly arise in digital assets where investors can potentially earn attractive risk-adjusted returns
- Similar to spin-offs, activist involvement, and other special situations in traditional corporate finance, our goal in digital asset markets is to leverage a constant flow of tradable events
- BXE seeks to gain exposure to early stage investments which we believe offer the greatest potential for asymmetric risk/reward opportunities.
- Similar risk profile to venture capital investing, but with the ability to sell if our thesis changes
- When applicable, we seek to strategically manage tax liabilities for our LPs to help minimize annual tax burden during periods of market contraction
- BXE leverages long term capital gains tax rates whenever possible to reduce the overall burden of operational expenses for our LPs