How do we get there?
BXE believes that a majority of a digital asset portfolio should be focused on liquid, core infrastructure investments, and that blockchain technologies have begun to fundamentally disintermediate traditional markets, though we’re still in the early stages of digital asset adoption.
As well, digital asset markets are currently among the most inefficient in the world. As this market is largely dominated by retail flow with minimal understanding of underlying fundamentals, prices often do not reflect a protocol’s intrinsic value. With radical financial innovation and growth comes radical investment returns and opportunity.
As the digital economy continues to rapidly evolve, we believe that a flexible, high quality, liquid portfolio should thrive.
FOCUS ON QUALITY
BXE believes that owning high-quality, dominant digital assets is the best way to capture appreciation from the mass migration away from traditional markets into digital assets. BXE Capital is invested in networks with real world use cases, significant user adoption, and supply/demand dynamics that can keep competition at bay and drive value to token holders. The fund does not take risk on projects or protocols that are still in the proof-of-concept stage, but rather focuses on core infrastructure digital networks within a particular sector.
BXE uses a multi-faceted approach in managing capital within digital asset markets. In addition to the core holdings across what we believe to be the highest quality projects, BXE Capital is also invested in tactical themes, special situations strategies with clear catalysts, and a variety of yield-generating strategies. In our experience, by combining many different strategies together, we aim to add alpha and our objective is to reduce our correlation with the broader market.
HIGHLY LIQUID PORTFOLIO
BXE Capital invests in a portfolio of digital assets via a diversified, liquid token fund. Many of our tokens have risk profiles similar to early-stage venture investments. However, the liquidity terms may be compared to traditional venture capital investments. This allows us to make rapid changes to the portfolio, such as changing our minds when we are wrong or harvesting gains as positions reach our valuation targets. We believe that the optionality provided by this liquidity is an essential asset in this rapidly evolving industry.