Cryptocurrency Funds

KSTechLaw attorneys advise on all aspects of formation, governance and operation of cryptocurrency funds.

We assist managers and sponsors with developing the fund’s legal strategy, structure and documentation, selecting appropriate jurisdiction and service providers, including suitable master-feeder, side-by-side and fund-of-funds models for a cryptocurrency hedge fund.

Comprehensive Advice and Assistance for Every Aspect of Cryptocurrency Funds

Creating and operating a cryptocurrency hedge fund requires careful attention to a range of legal, technical and practical considerations.

Drawing on our deep understanding of applicable law and experience representing clients in connection with a wide variety of complex financial matters, our attorneys help fund managers at every stage of creating and managing the fund, including:

  • Advising clients on the optimal financial, tax and legal structure for their cryptocurrency fund, including advice regarding master-feeder, side-by-side and fund-of-funds structures;
  • Drafting and filing the documents necessary to establish domestic and offshore structures for the fund, including Cayman feeders and Delaware limited partnerships;
  • Providing expert advice to clients regarding securities and other registration requirements and exemptions therefrom;
  • Creating detailed private-placement memoranda with comprehensive disclosures and disclaimers, investment agreements and related documents; and
  • Keeping our clients apprised of new legal and regulatory developments as they arise.

Experience

Assisted a foreign cryptocurrency fund manager with incorporating US feeder into the existing structure and advising on application of US regulations, including the Securities Act, the Investment Company Act and the Investment Adviser Act

Assisted an emerging manager with the setup of an incubator cryptocurrency fund and advised on converting the incubator fund into a full-fledged hedge fund in the future

Advised a client on setting up an Offshore management company in Cayman Islands and a Segregated Portfolio Company (SPC) to host offshore blockchain pooled investments

Advised a client in connection with setting up a cryptocurrency fund in Delaware as well as organizing an offshore-based Cayman feeder fund, including preparation of limited partnership agreements, private placement memorandum and subscription documents

Consulted a client in connection with setting-up a tokenized real estate lending “master feeder” fund (US/Cayman) and alternative hybrid structures

Advised a client on potential issuance of fund tokens and their possible effect on existing LP structure

Consulted a fund manager on setting up an SPV for tokenization of LP interest in a venture capital fund, including advice regarding structure’s classification for the purposes of US and Cayman securities regulations

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