Strategies
Digital asset fund operations for markets that never close
Crypto and digital asset funds trade across exchanges, wallets and custodians around the clock. Fundtec reconciles every venue, prices consistently and books on-chain events correctly.
In one minute
Digital asset fund operations reconcile holdings across exchanges, wallets and custodians, price tokens from defined sources, and account for staking income, forks, airdrops and continuous trading. Fundtec provides digital asset fund administration support, reconciliation and middle-office services for crypto hedge funds, venture token funds and managers adding digital assets to traditional portfolios, on Tychi or the client’s systems.
Managers running this strategy who want administration and operations that already understand its accounting, valuation and investor-reporting demands.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
What makes digital asset fund operations different
Digital assets trade on many venues, around the clock, with no single closing price and no central depository. A fund may hold the same token on several exchanges, in its own hot wallets, with a qualified custodian in cold storage and in staking or lending positions. Each source reports differently, and some only report on-chain.
The fund still needs a daily or monthly NAV that an auditor can test. That means a defined valuation cut-off, a pricing hierarchy across venues, a complete reconciliation of every wallet and account, and a written policy for events traditional funds never see. Fundtec builds those controls into the operating cycle.
Digital asset operations we cover
Exchange reconciliation
Balances, trades, fees and funding payments from each exchange API or statement reconciled to the book of record.
Wallet reconciliation
On-chain balances for fund-controlled addresses reconciled to internal records, including gas fees and internal transfers.
Custody tracking
Hot and cold custody positions tracked separately, with every movement between them documented and approved.
Pricing sources
Price selection by venue or index at a fixed cut-off, with stale-price and outlier checks and documented overrides.
Staking income
Staking and validator rewards recorded as they accrue or are received, per policy, with locked and unbonding positions tracked.
Forks and airdrops
Recognition of new tokens received through forks and airdrops, with cost basis and valuation approach documented.
Derivatives and lending
Perpetual swaps, futures, options and lending positions with funding payments and collateral tracked daily.
Custody stays with your custodian
Fundtec never holds tokens or keys. Assets stay with the fund’s chosen custodian and venues, and Fundtec works from read-only access. Every exchange, wallet and custody account sits on one reconciliation schedule, so the NAV reflects only balances the fund can evidence.
How Fundtec supports digital asset managers
Use cases
- Hire a Fund AdministratorAdministration for digital asset funds, including NAV, investor services and reporting.
- Launch a FundOperational setup for a new crypto fund, covering custody, venue onboarding and valuation policy.
- IBOR/ABOR SetupA multi-venue investment book of record that aggregates exchanges, wallets and custodians.
- Switch Your AdministratorA controlled move of positions, cost basis and investor records to a new digital asset administrator.
Middle office
- Trade OperationsTrade capture from exchange APIs and OTC desks, with fees and funding recorded by venue.
- Valuations & PricingVenue and index pricing at a defined cut-off, with checks for thin markets and illiquid tokens.
- Treasury OperationsMovements between exchanges, custodians and wallets, and fiat on- and off-ramps, tracked to approvals.
Managed investment operations
- ReconciliationDaily reconciliation of every exchange, wallet and custodian account, with breaks aged and escalated.
- Shadow AccountingAn independent NAV to check the administrator’s pricing, staking income and cost basis.
- Investor ServicesInvestor onboarding, KYC and dealing for funds that accept subscriptions in fiat or tokens.
Digital asset events and how we record them
| Event | Operational treatment | Control |
|---|---|---|
| Exchange trade | Captured from API or statement with fees by venue | Daily exchange reconciliation |
| Transfer between wallets or venues | Recorded as internal movement, gas fee expensed | Matched on both sides by transaction hash |
| Staking reward | Recognized as income per policy, locked amounts tracked | Reconciled to validator or custodian report |
| Hard fork | New token recorded if the fund can access and value it | Policy decision documented and approved |
| Airdrop | Recorded when received and controllable, valued per policy | Wallet reconciliation and approval |
| Perpetual funding payment | Accrued or booked as received by venue | Venue statement reconciliation |
| Valuation | Price at fixed cut-off from the approved hierarchy | Stale and outlier price checks |
Digital asset operational controls we put in place
- A written valuation cut-off time and pricing source for every token
- A complete register of exchange accounts, wallets and custodians
- Read-only API access and address monitoring, never trading or withdrawal keys
- A policy for staking, forks, airdrops and token rewards
- Documented procedure for weekend and holiday activity
- Four-eyes approval for transfers between custody tiers
Engagement model
How an engagement is structured
Economics aligned to your growth. Scope, cadence and pricing are confirmed jointly in the first phase.
- 01 · Weeks 1–4
Onboarding & design
A phase-linked fee covers process mapping, the operational handbook, systems access and the SLA framework — before any handover.
- Target operating model
- Operational handbook
- SLAs agreed jointly
- 02 · From the parallel run
Monthly base fee
Your dedicated team, pod manager oversight and the governance cadence — daily huddle, weekly review, monthly service review, QBR.
- Named PM → SME
- Trained backup for every role
- Governance included
- 03 · As you grow
Scales with AUM
AUM-linked tiers and pre-agreed triggers for new mandates or counterparties — so growth never means renegotiating the contract.
- Transparent triggers
- No renegotiation
- Quarterly pricing review
Every engagement starts with a scoping call — no obligation, no generic proposal.
Request an indicative proposalQuestions
Common questions about Digital Assets
Didn’t find your question? Put it to a specialist directly.
Ask a specialistFrequently asked questions
How does Fundtec reconcile exchange and wallet balances?
Fundtec pulls balances and transactions from each exchange through read-only APIs or statements and reads on-chain balances for fund-controlled addresses. Each is reconciled to the book of record, internal transfers are matched by transaction hash, and any break is logged with an owner and age until it is resolved.
How are digital assets priced for a fund NAV?
The fund’s valuation policy sets a cut-off time and a pricing hierarchy, usually a principal exchange or a recognized index, with fallbacks. Fundtec applies that hierarchy consistently, checks for stale or outlier prices and documents any override. Illiquid or locked tokens follow the policy’s specific methodology.
How do you account for staking income?
Staking rewards are recorded under the fund’s written policy, typically as income when earned or received, at the price on that date. Fundtec reconciles rewards to validator or custodian reports and tracks staked, unbonding and liquid balances separately so the NAV reflects what the fund can actually access.
What happens with forks and airdrops?
When a fund receives tokens through a hard fork or airdrop, Fundtec records them once the fund can access and control them, under a policy approved by the manager. The policy covers recognition timing, cost basis and valuation. Events are documented so the auditor can follow each decision.
Do you cover digital asset markets 24/7?
Fundtec provides 24/5 operational coverage. Weekend activity is handled through a defined procedure: exchanges and wallets are reconciled on the next business day, the valuation cut-off is fixed in the policy, and urgent issues follow an agreed escalation path. This gives consistent control without implying a trading desk service.
Does Fundtec hold or custody digital assets?
No. Fundtec does not hold client funds or digital assets and never requires withdrawal or trading keys. We work from read-only access to exchanges, custodians and wallet addresses. Custody stays with the fund’s chosen qualified custodians and venues, and Fundtec reconciles and reports on their records.
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Share your venues, custodians and valuation policy. We will map a reconciliation and NAV cycle that an auditor can test.