“A $115M Crypto Fund Sets Its Sights on Latin America: Investment Plans Revealed”

Hyla Fund Management Targets Latin America with Ambitious Crypto Fund to Be the “Goldman Sachs for Digital Assets”

Hyla Fund Management, a firm managing $115 million in assets, is launching a new crypto fund focused on Latin America, aiming to position itself as the “Goldman Sachs for digital assets” in the region. The move is a reflection of the growing opportunities for cryptocurrency funds that target Latin America’s emerging market.

Paola Origel, CEO and co-founder of Hyla, sees immense business potential in the region. Despite the interest of major funds like Sequoia and Andreessen Horowitz (a16z), Latin America’s crypto market remains fragmented, which makes it difficult to penetrate without a strong local presence. “You really need boots on the ground, people who understand the market and can communicate opportunities to founders,” Origel explained during an interview with CoinDesk.

As a Mexican native with 17 years of experience in the financial industry, Origel pointed out that Latin America, and particularly Mexico, has a very limited venture capital (VC) ecosystem. “There are very few venture capital funds, almost none,” she said. She personally researched the region to find top fund managers, selecting three based in Mexico City to help launch this initiative.

The current crypto ecosystem in Latin America mirrors the state of the global market in 2017, according to Origel. “Back then, there were no service providers or vendors who understood blockchain or crypto,” she recalled. “We were the first institutional fund to open a bank account with Wells Fargo because they didn’t understand what crypto was.”

Overcoming the Education Barrier

One of the biggest hurdles in Latin America is educating investors about cryptocurrencies. Unlike tangible assets like gold or cash, digital currencies are intangible, making them harder for traditional investors to grasp. “Latin American investors are still very traditional. They want to invest in things they can touch,” Origel said. She added that shifting this mindset is essential to unlocking crypto’s potential in the region. “We need to show them that these technologies actually work.”

Bridging Traditional Investment and Crypto

Hyla Fund Management operates as a fund of funds, serving as a bridge between traditional investors and the complex crypto space. Origel explained that many investors lack the resources or expertise to navigate the ever-evolving crypto market, making Hyla’s services invaluable. “The value of a fund of funds is access,” she said. “We’re jurisdiction-agnostic, and we know most fund managers globally, each with their own strategy.”

Hyla stays in close contact with both fund managers and the startups they invest in, giving the firm a unique advantage. Origel highlighted that while funds of funds are common in traditional finance, they are even more critical in the fragmented world of crypto. “In crypto, that approach holds more value because the space is so complex,” she said.

The ultimate goal is for Hyla to become the go-to institution for digital assets, much like Goldman Sachs is for traditional finance. In addition to the upcoming Latin America-focused crypto fund, Hyla currently manages a range of strategies, including a liquid venture fund and market-neutral yield strategies for Bitcoin (BTC) and Ether (ETH).

Latin America: A Region Poised for Crypto Growth

Origel is optimistic about the impact crypto could have on Latin American economies, particularly in helping them transition from frontier markets to more developed economies. She pointed to the remittance sector as a prime area of opportunity, where high fees and poor banking infrastructure often make international money transfers expensive. Crypto could serve as a more efficient alternative.

In addition, there is considerable room for improvement in mobile financial services for peer-to-peer transactions, especially given the significant unbanked population in the region. “Mobile companies have plenty of room to improve their products,” said Origel.

The shifting global supply chains and growing entrepreneurial talent in countries like Brazil, Colombia, and Argentina further increase the appeal of the region. However, Origel cautioned that the market is still in its early stages, which impacts how Hyla approaches investments. “You can’t be picky in such a small market,” she said. “You can’t say, ‘We’re only going to focus on infrastructure.’ There’s not enough deal flow to do that. You need to be open to any sector.”

While she remains focused on Latin American markets, Origel emphasized that the quality of the team behind a project is the most critical factor in investment decisions. Brazil’s growing crypto development, Mexico’s familiarity, and other countries such as Argentina and El Salvador are also of interest, though in the end, a project’s caliber is what matters most.

“We want to find the next unicorns that will have not only a regional impact but a global one,” Origel concluded.