Valour, the digital asset exchange-traded product arm of DeFi Technologies, has expanded into actively managed investment strategies with the launch of Smart Crypto Fund SP, its first hedge fund under the newly established Valour Funds SPC business.
The fund began operations on Sept. 21 and is designed for professional and qualified investors rather than retail customers. The launch was disclosed in a regulatory filing and company announcement.
Smart Crypto Fund SP combines Valour’s institutional digital asset infrastructure with an artificial intelligence-driven investment strategy developed by Swiss portfolio manager Neuronomics AG, moving Valour beyond fixed digital asset exposure into actively managed portfolio allocation.
The move broadens Valour’s investment offering, which already includes more than 100 digital asset exchange-traded products. The company said the new business line is intended to provide professionally managed digital asset strategies through a dedicated fund structure.
AI models determine portfolio exposure
Unlike a fund that maintains a fixed basket of cryptocurrencies, Smart Crypto Fund SP uses Neuronomics’ proprietary AI ensemble to adjust its exposure across a regularly reviewed selection of liquid digital assets.
The models analyze price, volume, and other market information over short- and medium-term periods. Their assessments are used to determine which assets to hold, the size of individual positions and when exposure should be reduced as market conditions or risk indicators change.
The strategy is subject to predefined risk budgets, individual asset limits and concentration controls. These measures are intended to constrain portfolio exposure while allowing the models to respond to changing market conditions.
Trading instructions are also executed using algorithms selected according to market liquidity and expected transaction costs. This gives the strategy an additional execution layer designed to account for the practical costs and conditions involved in trading digital assets.
The approach is intended to distinguish useful market signals from short-term noise and translate model forecasts into portfolio decisions. However, the fund’s performance will ultimately depend on the effectiveness of the underlying models and their ability to operate during highly volatile market conditions.
Cayman Islands fund targets institutions
Smart Crypto Fund SP is the first hedge fund established under Valour Funds SPC, a Cayman Islands company registered with the Cayman Islands Monetary Authority.
The fund’s operating structure separates investment management, administration, custody, banking and trade execution among specialist service providers. The arrangement is designed to provide the operational infrastructure associated with professionally managed investment vehicles.
The fund gives professional and qualified investors access to an actively managed digital asset strategy while combining AI-based portfolio management with institutional fund administration, custody and execution infrastructure.
Neuronomics AG manages the investment strategy and is described as a Swiss portfolio manager authorized by the Swiss Financial Market Supervisory Authority. DeFi Technologies holds a minority stake in the company. Its broader digital asset infrastructure also includes Stillman Digital, which provides institutional trading and liquidity services.
Valour expands beyond passive exposure
The launch represents a shift in Valour’s business model from its established exchange-traded product offering toward actively managed digital asset investment vehicles.
ETPs generally provide exposure to specified assets or strategies through listed instruments, while the new hedge fund can change allocations according to its investment models and risk assessments. That distinction allows the fund to respond to market conditions rather than maintain a predetermined allocation.
The expansion comes as institutional investors continue to examine different ways of accessing digital assets, including professionally managed strategies. Valour’s new fund structure provides another route for eligible investors while maintaining restrictions that exclude retail participation.
There are also significant risks. Digital assets remain volatile, and an AI-based strategy cannot guarantee positive returns. The fund’s results will depend on model performance, market liquidity, trading costs, and the effectiveness of its risk controls.
With Smart Crypto Fund SP, Valour is establishing a new institutional channel for actively managed digital assets, extending its platform from exchange-traded products into AI-driven hedge fund strategies.