July 2021
Vol 8 | Issue 596

Q&A with Kenneth Estes of Diffuse Inc

CEO

Principal Series:

Diffuse Inc is an alternative fund platform offering differentiated investment products.

Our Diffuse Digital fund suite features a selection of products for investors who want exposure to the potentially attractive returns in digital assets. We partner with Wall Street respected service providers and adhere to institutional grade compliance, risk management, and investing processes.

Diffuse Digital’s flagship product is Diffuse Digital 30, the first institutional grade digital asset index fund, that gives investors access to a diversified basket of the top 30 coins by market capitalization and redeemable monthly. Without performance fees or the headache of investing directly.

Join us for a private Family Office Insights Webinar featuring Kenny Estes, CEO of Diffuse, crypto investor, high-frequency trader, venture capitalist, and serial manager of emerging alternative funds. He’ll be joined by Diffuse’s co-founder/COO, Ayla Kremb, emerging tech commercialize, fundraiser, alt fund incubator, and operator. Diffuse recently launched Diffuse Digital 30, the first institutional grade digital asset (crypto) index fund, giving investors passive exposure to the largest 30 digital assets (and their attractive returns) without the complexities of investing directly.

July 27, 2021 at 2:15pm-3:15pm EST
RSVP & Confirmation Required

Investors Only Please!


Family Office Insights is a voluntary, “opt-in” collaborative peer-to-peer community of single family offices, qualified investors and institutional investors. Join the community here www.familyofficeinsights.com


What are the opportunities digital assets that Diffuse sees and seeks to capture? Why now?

In 2019 the story of digital assets had two protagonists: Bitcoin and Ethereum. With the rise of competitor blockchains and decentralized finance (DeFi) the story now has an ensemble cast.

In January 2021 over 4000 altcoins were in market. Since then new coins launch daily.
As a result, the Bitcoin+Ethereum share of the DD30 index dropped from 90% at the start of the year to 70%.

Roughly 20% of the top 30 assets by market cap change on a monthly basis. Nobody knows who the winners will be.

Investors are desperate for digital asset exposure to capitalize on the meteoric rise of alt coins, while retaining diversified, dynamic exposure to the highest potential assets without the risk of betting on single coins, but fund producers largely still focus on BTC and ETH.

Since there was no efficient way to invest in the whole ensemble (i.e., a diversified basket of all the star digital assets), we launched Diffuse Digital 30, the first institutional grade digital asset index fund, giving investors access to a diversified basket of the top 30 coins by market capitalization and redeemable monthly...without performance fees or the headache of investing directly.

What differentiates Diffuse Digital 30 from other (similar) digital asset investment opportunities?

DD30's key differentiation is its institutional grade product features:
Asset Selection - A true beta product that tracks the top 30 coins by market capitalization, rebalanced monthly
Product Design - Managed by a team of veteran traders, represented by Wall Street respected legal, administration, and audit
Infrastructure: Licensed custodians only and lending to offset index slippage.

The fund is designed to be a low fee investment vehicle (2% management fee, 20% on lending and staking revenue, and 0% on asset appreciation) with an attractive profit share program and approachable $250k minimum to all investors who commit early.

What is the opportunity for Investors?

Diffuse Digital 30 is live and accepting capital. We launched the fund on the back of two decades of capital markets experience, 8 years of digital asset trading, and 9 months of complex fund structuring to design a product that gives investors the opportunity to profit from the potentially attractive returns of diversified crypto exposure, while enjoying the peace of mind of an institutional infrastructure.

Early investors benefit from a lower $250k minimum investment (increases to $1M when we hit $5M AUM) and an attractive share in the funds profits for the lifetime of the fund (incentive is only available to investors who commit before we hit $10M AUM).


Kenneth Estes of Diffuse Inc

Kenny Estes was among the first high-frequency traders at Getco (now Virtu) at age 18. While (and after) helping grow Getco into a public entity, he launched 7 investment funds, spanning capital markets, real estate, and venture capital. Through his unique experience, Kenny spotted an opportunity to apply his tried-and-true capital markets strategies to the emerging digital asset class, as the CEO and co-founder of Diffuse Inc. Contact Kenny: kenny@diffuse.vc