Seven Seas Capital, a decentralized finance (DeFi) investment firm, announced the launch of its ETH DeFi Yield Fund on December 10, targeting institutional investors seeking exposure to Ethereum yields. The fund aims to generate 10% returns relative to ETH through market making on decentralized exchanges and leveraged positions. This launch follows the firm's track record of managing $2.8 billion in non-custodial investment vehicles over three years.

The fund's strategy focuses on three main areas: providing trading liquidity, capturing arbitrage between ETH staking and borrowing rates, and exploiting price discrepancies in ETH liquid staking tokens. Seven Seas has established itself in DeFi market making, with its vaults becoming major liquidity providers for staked and restaked ETH on Ethereum, handling over $10 billion in trading volume. The firm is expanding operations to Ethereum Layer 2 networks to capitalize on market inefficiencies.

Co-founder and CEO Sun Raghupathi stated, "We believe Ethereum will see growth as the primary layer for asset tokenization. Our investment objective is to turn ETH into more ETH." The firm's technical infrastructure includes development of vaults on Somm Finance and the creation of Veda, a yield layer used by DeFi applications like EtherFi. During market stress events, including the Silicon Valley Bank collapse and USDC depegging, the firm maintained stable operations.

Seven Seas combines expertise from traditional finance, DeFi, and technical development. The team includes smart contract developers, data scientists, and finance professionals focused on creating DeFi investment strategies accessible through both traditional fund structures and non-custodial vaults.

The company plans to launch a Bitcoin DeFi Yield Fund as its next product, expanding its institutional offerings beyond Ethereum-based strategies. This development comes as institutional interest in cryptocurrency yield products grows, with firms seeking regulated access to DeFi returns. Seven Seas' approach combines traditional fund structures with DeFi yield generation, addressing the growing demand for professional crypto asset management.

The fund launch represents a step toward bridging traditional finance with DeFi yields, as institutional investors look for ways to participate in cryptocurrency markets through regulated vehicles while accessing the yields available in decentralized protocols. Seven Seas Capital's ETH DeFi Yield Fund is now open for institutional investment, with the BTC fund scheduled to follow. The firm operates from the British Virgin Islands and continues to manage its existing non-custodial investment products alongside the new fund offerings.

Don’t forget to like and share the story!

Vested Interest Disclosure: This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR