ML Tech, a non-custodial digital asset investment management platform providing institutional investors access to automated crypto trading strategies, recently raised over $1.9 million in a strategic round that included well-known investors such as Belvedere Strategic Capital, Hyperithm, and Nascent.
“Belvedere Strategic Capital is excited to invest in and partner with ML Tech to help unlock the long term growth potential of managed money in the digital asset space. With a background in quantitative trading we understand and appreciate the importance of low beta systematic strategies for broad based portfolios,” says Ryan Sullivan, Partner at Belvedere Strategic Capital.
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The Miami-based company, which launched in May 2020, previously raised a $1.75 million seed round in August 2021, led by West Loop Ventures. With the new funding, ML Tech plans to scale its infrastructure and invest in client acquisition, growth and marketing.
ML Tech provides full ownership and control to investors through their separately managed accounts (SMAs) approach. AUM reached $45 million as of December 2022 from $5 million in June 2022. It also secured status as a Commodity Trading Advisor (CTA) with the Commodity Futures Trading Commission (CFTC) this fall in preparation to onboard eager institutional investors in their deep pipeline. “We registered with the CFTC because the digital asset space is undergoing a shift right now where there’s been a loss of confidence in the space, and we believe that additional transparency, regulation and compliance are critical for wider institutional adoption,” says Leo Mindyuk, ML Tech’s CEO and Co-founder.
ML Tech generates revenue by charging a management and performance fee on automated trading strategies available on their marketplace for institutional investors. Investors use ML Tech to invest in crypto strategies designed by experienced traders and trading teams. Additionally, the company recently introduced a new product, Volume-as-a-Service which has drawn strong interest from investors who are looking to improve their trading fees on various crypto exchanges.
Hyperithm’s CEO, Lloyd Lee explains, “We participated in the round because we’ve already witnessed ML Tech’s capabilities as an asset management platform throughout the past several months as a client. As one of the largest crypto hedge funds in Japan and Korea, we believe there are also numerous ways the two teams could collaborate. We’re more than excited to find those out.”
The company will continue to expand their current offerings – adding diverse trading strategies, new asset classes, and support for additional exchanges. ML Tech is also looking to partner with select distribution channels for yield generation and exchange traded products powered by ML Tech strategies.
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