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A Partnership Rooted in Security and Trust

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The Search for a Trusted Custodian

Managing and securing cryptocurrencies presents unique challenges given the nascent nature of the market. With prominent exchange scandals, political and regulatory changes, Cyber Capital sought the highest level of security and reliability to secure their assets. “When we launched in 2016, the custody solutions in the market were very limited. We ultimately built our own self-custody solution, involving three bank vaults across various cities. Our security protocols were designed to enable safe self-custody and had been stress-tested by experts. To be able to handle custody and maintain the highest standards possible for our clients was challenging given this was not our core business and we already knew back then that exchange risk was one of the risks we wanted to minimize ,” said Alexander Werkheim, CEO. The firm evaluated many potential partners for the role of custody provider but found that they were not compliant with the bar they had set for their fund. They required a best-in-class partner with experience navigating the evolving digital asset environment, but many providers failed to live up to expectations. In 2021, Cyber Capital evaluated and selected BitGo Bank & Trust, National Association, as their custodian due to its reputation for robust security measures, regulatory compliance, and institutional-grade services.

BitGo’s secure cold storage and advanced security protocols have significantly enhanced the security of Cyber Capital’s clients’ assets, mitigating risks associated with hacking, theft, and other threats.

Increasing operational efficiency

By using BitGo for custody, Cyber Capital has been able to focus on its core business and investment strategy and reduce its operational overhead.

BitGo's security practices are world-class; they truly go the extra mile. The security gained in such a partnership is unparalleled and I highly recommend that other funds take the same path.

Justin Bons of Cyber Capital

Enhancing investor confidence

Partnering with a reputable custodian like BitGo has helped Cyber Capital build trust with its clients, particularly institutional investors who require the highest standards of security and compliance.

Expanding market reach

BitGo’s reputation as a leading custodian has also enabled Cyber Capital to attract a wider range of investors, including funds of funds and other institutional clients, that share the firm’s long-term vision

Cyber Capital’s Perspective on the Partnership

Bons expressed his satisfaction with the partnership by stating, “BitGo’s security practices are world-class; they truly go the extra mile. The security gained in such a partnership is unparalleled and I highly recommend that other funds take the same path.” Werkheim added, “Among professional crypto custodians we believe BitGo to be top-tier, if not the best. We are always aware of relevant updates and any practical issues are addressed in a professional manner. There is plenty of room for sharing ideas on potential features or developments and we are happy to contribute on that front. Overall, we consider our relationship with BitGo to be very good.”

Looking Ahead

The partnership between Cyber Capital and BitGo serves as a testament to the growing importance of secure and reliable custody solutions in the cryptocurrency market. By leveraging BitGo’s expertise and technology, Cyber Capital has been able to enhance its offerings, strengthen investor confidence, and position itself as a leading player in the industry. “With the entrance of increasing numbers of professional and institutional investors in the space, the value of fundamental research and secure asset infrastructure becomes increasingly important. Adding the growing usage numbers in selected protocols to this, we see the foundation for another exciting growth phase, for our Fund and cryptocurrencies in general,” the team stated.

ABOUT THE CLIENT

Cyber Capital, founded in 2016, is a European fund manager offering investors diversified exposure to cryptocurrencies. Their flagship fund, Fund A, is Europe's longest-standing cryptocurrency fund, delivering a 10,289.28% net return since its inception as of Q3 2024. Founder and CIO, Justin Bons, sees the cryptocurrency space as a "limitless source of intellectual intrigue capable of transforming society and simplifying complex financial systems.” This vision drives Cyber Capital's investment approach, as they conduct rigorous quantitative research to identify cryptocurrencies with real-world utility, sound consensus mechanisms, robust token economics, and other fundamental strengths.

HQ
Netherlands