Rigorous due diligence adapted to crypto
Digital assets present unique risks, from smart contract vulnerabilities to protocol governance issues. The fund addresses these through a proprietary due diligence questionnaire that combines traditional fund of hedge fund methodologies with crypto-specific assessments. “We evaluate everything from validator decentralization to chain governance vulnerabilities, protocol governance and smart contract audit standards,” says de Luque Muntaner.
All due diligence is conducted in-house, ensuring consistency and independence.
The process includes rigorous investment and operational checks, followed by multiple rounds of meetings, interviews and ongoing monitoring. All operational due diligence is performed in-house: “This maintains alignment with our high standards, consistency and independence of judgement. From time to time, we also exchange knowledge and insights informally with peer funds of funds in the space to benchmark and refine our practices,” says de Luque Muntaner.
Competitive performance
The fund’s success is evident in its track record. “Our venture capital sleeve delivered outsized gains during 2021-2022,” de Luque Muntaner notes, highlighting the fund’s ability to capitalize on emerging trends like DeFi and Layer 2 scaling solutions, technologies that enhance blockchain efficiency by processing transactions off the main chain. The fund targets returns of 100-150% net internal rate of return over a 5-7 year horizon for its venture capital investments.
Current positioning and outlook
As of August 2025, and earlier in 2025, the fund has overweighted beta and venture capital sleeves, reflecting optimism about market conditions. “We see significant opportunities in real-world asset tokenization and DeFi protocols,” de Luque Muntaner says. These areas align with broader market trends, such as increasing institutional adoption and regulatory clarity, as noted in recent industry analyses. There is no set capacity limit and a scalable structure.
Curated exposure to a transformative market
As blockchain technology reshapes asset management (and other industries), bringing transparency, efficiency and new investment avenues, funds like Blockchain Strategies Fund are at the forefront of this transformation. With its strong performance, rigorous due diligence and strategic foresight, it offers broad and carefully curated exposure for investors navigating the complexities of digital assets.
Vehicle choices and features
There are USD and EUR share classes. BAM decided against hedging the EUR share classes. “As digital assets are largely USD-denominated, hedging EUR introduces unnecessary cost and basis risk. Most EUR investors prefer to accept USD base exposure,” says de Luque Muntaner.
BAM could contemplate BTC or ETH denominated share classes in response to investor demand and regulatory developments; “Operationally it is feasible but complex,” says de Luque Muntaner.
Separately managed accounts could be offered for tailored exposures and reporting preferences, but currently there are none.
