In 2023, INDIGO Fund marked a transformative year in the digital asset hedge fund sector. Their innovative investment approach surpassed both Bitcoin and traditional financial benchmarks, solidifying their position as leaders in financial empowerment through digital assets.
The INDIGO Investment Framework
Key to INDIGO’s success is its dual-portfolio strategy, comprising Blue Chip and Exotic collections.
The Blue Chip portfolio focuses on premier digital tokens, integrating them deeply into Decentralized Finance (DeFi) ecosystems and protocols which delivered enhanced yields in addition to the tokens sole performances.
The Exotic portfolio explores innovative territories like InsurTech, arbitrage, and NFT finance.
Within the InsurTech realm, investments were directed toward stablecoin pools, establishing partnerships with select insurers to yield returns and provide additional diversification shielded from digital asset market fluctuations.
The distribution of capital across various strategies was as follows: 50% allocated to long-term holdings, 20% to liquidity provision and staking, 15% to geographical arbitrage, 10% to NFT finance, and 5% to InsurTech. These strategies collectively yielded an impressive 37.42% return in 2023, highlighting the fund’s exceptional performance since capital deployment.
Between June 1st, 2022, and December 31st, 2023, INDIGO achieved a return of 37.94%, surpassing BTC’s 33.12% return during the same period.
Building on the success of the previous year, INDIGO aims to maintain momentum and introduce additional high-caliber investment strategies to tap into the burgeoning digital assets market with compelling returns.
What Lies Ahead in 2024?
“The crypto hedge fund industry is captivating due to its rapid technological advancements and market volatility, presenting both challenges and opportunities,” says Thomas Puech, Co-Founder/CEO at INDIGO Fund. “Navigating these dynamics requires agility, strategic insights, and offers the potential for substantial returns in a transformative era for global finance.”
In Q1 2024, INDIGO is set to unveil a new ETH yield fund, targeting annual returns between 12% and 16%, denominated in ETH. Centered on the NFT Finance ecosystem, the fund will primarily focus on NFT financing, leveraging robust NFT collections as collateral.
Maintaining a cautious stance, standard loan terms adhere to a 55% Loan-to-Value (LTV) ratio for a 30-day period. This prudent approach safeguards the fund’s liquidity on a monthly basis.
INDIGO has established strategic partnerships with prominent NFT Finance companies such as NFTfi, Gondi, Arcade, and Metastreet. Through consistent loan provision on these platforms, INDIGO engages in token farming, enhancing yield alongside the interest accrued from loans.
About INDIGO
INDIGO, a digital assets Hedge Fund, draws on 25+ years of collective experience in crypto and web3. Specializing in liquid tokens, it leverages DeFi, NFT Finance, and arbitrage opportunities. Operating as an opportunistic long-only investment fund, INDIGO provides a secure and exciting avenue for investors in the rapidly expanding cryptocurrency market.
With a discretionary approach, the firm strategically invests in a diverse range of liquid tokens, placing a strong emphasis on yield generation through DeFi. INDIGO capitalizes on arbitrage opportunities by identifying inefficiencies in this dynamic market.
The mission of INDIGO is to be a catalyst for empowerment, aligning the creator economy with visionary investors. Committed to delivering compelling returns, the fund minimizes risk through meticulous diversification and active management.
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