Valour, the digital asset investment products subsidiary of DeFi Technologies, has launched its first hedge fund as it expands beyond exchange traded products into actively managed cryptocurrency strategies.

The new Valour Funds SPC business will offer Smart Crypto Fund SP, a Cayman Islands-domiciled hedge fund aimed at professional and qualified investors. The strategy is managed by Swiss portfolio manager Neuronomics AG and uses proprietary artificial intelligence models to determine exposure across a selection of liquid digital assets.

The launch gives Valour an actively managed investment offering alongside its existing range of more than 100 digital asset exchange traded products (ETPs). The company said the new fund combines its institutional digital asset infrastructure with Neuronomics' systematic investment approach.

Rather than maintaining a fixed allocation to a particular cryptocurrency or basket of assets, Smart Crypto Fund uses AI models to adjust positions as market conditions change. The models assess price, volume and other market data across different time horizons, with the resulting signals used to determine portfolio allocations and overall market exposure.

The strategy is also designed to reduce positions when model signals deteriorate or perceived risks rise. Position sizes are subject to predefined risk budgets, concentration limits and controls on aggregate market exposure, while trading algorithms are selected according to liquidity and expected transaction costs.

Neuronomics founder and CEO Dr Michael Kometer said the firm's AI models are intended to identify relevant market signals from the large volume of data generated by digital asset markets and translate those forecasts into portfolio decisions.

Smart Crypto Fund is the first hedge fund established under Valour Funds SPC, a wholly owned subsidiary of Valour. The Cayman Islands vehicle is registered with the Cayman Islands Monetary Authority and uses separate specialist providers for areas including fund administration, custody, banking, execution and audit.

The structure reflects the growing use of institutional fund infrastructure for actively managed digital asset strategies, with investment management, custody, administration and execution functions separated within the fund framework.

Neuronomics is a FINMA-authorised Swiss portfolio manager specialising in AI-based and systematic digital asset investing. DeFi Technologies holds a minority stake in the company.

For Valour, the hedge fund launch represents an expansion from its established ETP business into a different segment of the digital asset asset-management market, giving professional investors access to a systematic strategy rather than a passive or exchange-traded exposure to individual cryptocurrencies.

DeFi Technologies also operates Stillman Digital, an institutional digital asset trading and liquidity platform, and DeFi Alpha, which focuses on opportunistic trading, arbitrage and other capital markets strategies.