01
Multiple Strategies
Market making, DeFi, arbitrage and spot trading within one investment model.
Medici Expert Cases
From Multi-Strategy Crypto Model to an Investable Fund Structure
The client wanted to raise capital for market making, DeFi, arbitrage and spot trading, and move it between strategies as performance required. A European AIF did not fit that model. We built a Panama private fund with a separate manager and a separate crypto operating company, prepared for investor, bank and exchange due diligence.
Trusted by clients and partners across the globe
Case
at a Glance
Client:
Crypto asset manager
Situation:
Investment strategy defined, no legal fund structure
Challenge:
Bring several crypto strategies into one structure international investors can enter
Medici Scope:
Fund structuring · Fund documents · Crypto company · AML/KYT · Due diligence package
Jurisdiction:
Panama · Costa Rica
Timeline:
[[timeline]] · [[year]]
Outcome:
Fund structure established · Investor documentation prepared · Ready for bank and exchange onboarding
Context
The strategy was defined. The fund structure was not.
The client planned to raise capital from qualified investors and allocate it across market making, DeFi, arbitrage and spot trading, reallocating as results changed.
Investors would contribute crypto, including stablecoins. The fund would still need to work with banks, exchanges and custodians.
The investor base was international, mainly Latin America, Asia and MENA.
The task was to turn a flexible multi-strategy model into a structure that investors and financial counterparties could understand and approve.
The Challenge
One fund had to hold very different strategies.
01
Crypto In, Crypto Out
Digital assets alongside traditional banking and fiat rails.
01
Investors From Three Regions
A jurisdiction workable and familiar for investors across all of them.
01
Counterparty Due Diligence
Banks, exchanges and custodians would run their own checks. The structure had to pass them.
From Strategy to Fund
01
Investment Model
Market making · DeFi · Arbitrage · Spot
02
Jurisdiction & Structure
Panama Private Investment Fund
03
Fund Documents
Offering memorandum · Subscription · Risk disclosure · AML/KYC
04
Management Layer
A separate fund manager
05
Crypto Operations
A Costa Rica operating company
Trading · Crypto operations · On/off-ramp*
06
Counterparty Readiness
Banks · Exchanges · Custodians
What Made the Case Difficult
Flexibility for the strategy. Clarity for the counterparties. In plain terms:
01
EU Alternative Investment Fund
An EU Alternative Investment Fund is a well-recognised vehicle, with defined rules on permitted assets, management and investor entry and exit. Reallocating freely between DeFi, market making and arbitrage is difficult within that framework.
01
Panama Private Investment Fund
A Panama Private Investment Fund is designed for a limited circle of qualified investors and allows more strategic flexibility.
01
Counterparty Due Diligence
The trade-off is scrutiny. Banks and exchanges review offshore funds closely, so the structure around the fund had to be clear enough to pass their due diligence.
Our Approach
Investment, management and execution in separate entities.
01
The fund holds the investment.
Investor capital and investment interests sit at fund level.
02
The manager runs the strategy.
Management is separated from fund assets and from day-to-day crypto execution.
03
The crypto company executes.
A Costa Rica entity handles trading and crypto operations under the agreed structure.*
This separation makes responsibilities and money flows clear to investors, and gives banks and exchanges a structure they can follow.
Tokenised fund interests were designed as a possible future layer, without making launch dependent on them.*
The Outcome
A strategy became an investable operating structure.
01
Fund Established
A Panama private fund with separate management and operating companies.
02
Investor-Ready
Offering memorandum · Subscription agreements · Risk disclosure · KYC/AML documentation
03
Counterparty-Ready
Due diligence package prepared for banks, exchanges and custodians.
04
Multiple Strategies, One Structure
Market making, DeFi, arbitrage and spot built into the operating model.*
*The appropriate fund structure, regulatory requirements and availability of specific crypto activities depend on the investment model, investor profile, jurisdictions and counterparties involved. Tokenisation is subject to a separate legal and regulatory assessment.
Building a Crypto Fund?
Define the strategy, then choose the jurisdiction.
01
What will the fund actually do?
Trading, market making, DeFi, staking and arbitrage can trigger different structural and regulatory requirements.
01
Who will invest?
Investor type, number and location narrow the available fund structures.
01
Who will hold, manage and execute?
Separating fund, manager and operating company makes responsibilities and money flows clearer for every counterparty.
The right fund structure starts with how capital will actually move.
Turning a Crypto Strategy Into a Fund?
Tell us what the fund will trade, who the investors are and where they are based. We will map the structure and jurisdictions around how the strategy actually works.
Discuss Your Case