Bessie Liu

Travis Kling, the founder and chief investment officer of Ikigai, revealed that the cryptocurrency asset management firm has been caught up in the FTX collapse.



A large majority of the hedge fund&#8217;s assets had been on FTX, according to Kling. After the news of the centralized exchanges’ collapse, the company went to withdraw money, only to find it could retrieve very little.



“It was entirely my fault and not anyone else’s. I lost my investors’ money after they put faith in me to manage risk and I am truly sorry for that. I have publicly endorsed FTX many times and I am truly sorry for that. I was wrong,” Kling <a href="https://twitter.com/Travis_Kling/status/1592198297829376000" target="_blank" rel="noreferrer noopener">tweeted</a>.



Kling said that in the short term, Ikigai would continue to trade assets which are not on FTX.



Ikigai previously raised $30 million from existing investors to launch a <a href="https://cms.blockworks.co/news/crypto-hedge-fund-ikigai-tests-venture-capital-waters-sources/" target="_blank" rel="noreferrer noopener">venture fund</a> which was not affected by FTX’s collapse, according to Kling. It is currently in the process of deciding the next steps for this fund.



The company does not know what the timeline and potential recovery of funds will be. Ikigai is still in the process of deciding whether or not to continue running the firm and or begin winding down operations.



Kling expressed his disappointment in the industry and the scope of events which unfolded last week on Twitter, noting that it is “hard for me to imagine the space bouncing back quickly from this ordeal.”



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“I just don’t have it in me at the moment. I’m pretty disgusted with the space as a whole and kinda humanity in general,” Kling <a href="https://twitter.com/Travis_Kling/status/1592198297829376000" target="_blank" rel="noreferrer noopener">tweeted</a>.</blockquote>



Kling believes that for crypto to recover from the events that transpired, much more needs to be done to expel bad actors and remodel the concept of trust.&nbsp;



“We’re letting way too many sociopaths get way too powerful and then we all pay the price. If Ikigai continues on, we pledge to fight harder in this regard. It’s a fight worth fighting,” he said.



Many industry participants have shown their support to the Ikigai team, with co-founder and CEO at ChintaiNetwork David Packham <a href="https://twitter.com/GunnisonCap/status/1592203579687047169" target="_blank" rel="noreferrer noopener">tweeting</a> that, “Your only real mistake was trusting a firm backed by huge funds and regulated in a region was not a fundamental dishonest bad actor committing mass fraud.”



Ikigai declined Blockworks request for comment.



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Ikigai Fund Caught Up in FTX Contagion

On today&#8217;s episode of &#8220;<a href="https://youtu.be/pprRKQSr6Ug" target="_blank" rel="noreferrer noopener">Empire</a>,&#8221; Jason Yanowitz and Santiago Roel Santos are joined by by Travis Kling, founder of Ikigai Asset Management. Travis is a prolific investor who sits at the intersection of macro and crypto. 



They discuss the implications of the ETH 2.0 merge, why ETH is prime for institutional capital and what a macro bear market means for crypto. This is a must-listen if you&#8217;re interested in the ETH 2.0 Merge and ETH&#8217;s investment prospects. (Warning: Travis is a mega bull.)



Plus, hear more on:



<ul class="wp-block-list"><li>Ikigai&#8217;s investment strategy</li><li>Layer-1 wars</li><li>Bitcoin&#8217;s 2022 outlook</li><li>And so much more!</li></ul>



Check out what they had to say in the video below.👇



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="The ETH Merge Is The Greatest Catalyst In Crypto History | Travis Kling" width="1024" height="576" src="https://www.youtube.com/embed/pprRKQSr6Ug?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



<h3 class="wp-block-heading">About the show</h3>



&#8220;Empire&#8221; is a twice-a-week show. On Thursdays, Jason interviews crypto industry movers and shakers to talk about their struggles, bold moves and tough decisions. Friday&#8217;s weekly roundup episodes feature <meta charset="utf-8">co-host Santiago Roel Santos and cover the top news from the past week.



For any NPR or Guy Raz fans out there, you can think of &#8220;Empire&#8221; as a &#8220;How I Built This&#8221; for the bitcoin and crypto industry.



Subscribe to &#8220;Empire&#8221; today on&nbsp;<a href="https://podcasts.apple.com/us/podcast/empire/id1554930038" target="_blank" rel="noreferrer noopener">Apple</a>&nbsp;or&nbsp;<a href="https://open.spotify.com/show/4UTePv1CR3APdKOiosR3Iq" target="_blank" rel="noreferrer noopener">Spotify</a>. Watch episodes on&nbsp;<a href="https://www.youtube.com/playlist?list=PLvER9nHSRN3wPkrDGTT5_8VC4Hjcq0f9U" target="_blank" rel="noreferrer noopener">YouTube</a>.



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Bitcoin

Podcast: Bull Case for ETH 2.0 Merge | Travis Kling

Michael Bodley

<div id="highlights-block_61eb120ab820c" class="highlights">
 <ul>
 <li>Although valuations for private crypto companies are sky-high, investors continue to pour money into venture capital funds</li>
 <li>The firm plans to cut off contributions to the new fund at $40 million, sources said</li>
 </ul>
 
</div>



Crypto hedge fund firm Ikigai Asset Management is launching its first venture capital fund on the back of strong investor demand, according to two sources familiar with the matter.



The firm had previously been taking private blockchain stakes in its flagship Ikigai Opportunities Master Fund via <a href="https://www.investopedia.com/terms/s/sidepocket.asp" target="_blank" rel="noreferrer noopener">side pockets</a>, or seperate accounts for illiquid assets. Ikigai, run by founder and chief investment officer Travis Kling, initially set out to raise $20 to $30 million for its inaugural venture capital fund.&nbsp;



Investor demand, however — Ikigai marketed the fund exclusively to existing limited-partners — led the firm to cap the oversubscribed fund at $40 million. The vehicle would likely launch sometime this quarter.&nbsp;



Sources were granted anonymity to discuss sensitive business dealings. Kling declined to comment.&nbsp;



<h3 class="wp-block-heading">“Outstanding” track record</h3>



Kling has hit on a number of past private investments via Ikigai’s flagship fund, with one family-office investor calling his track record on such plays “outstanding.”&nbsp;



The firm has been investing in venture assets since at least 2019, when Ikigai contributed to a <a href="https://www.finsmes.com/2019/07/digital-assets-data-closes-3-2m-in-equity-funding.html'" target="_blank" rel="noreferrer noopener">$3.2-million raise</a> for Digital Assets Data.&nbsp;



Valuations for private digital assets deals have been soaring recently, but many industry participants don’t expect much of a downturn.



“We keep seeing more and more money coming in, and valuations growing, and rounds becoming higher and higher,” said one crypto hedge fund manager who asked not to be named.&nbsp;



Ikigai’s limited-partners include asset managers and funds-of-funds. Its overall assets under management aren’t publicly available.&nbsp;



In an <a href="https://www.kanaandkatana.com/blog/january-2022-market-update" target="_blank" rel="noreferrer noopener">annual review letter</a>, Kling called 2021 a “spectacular” year for crypto. Huge gains were driven in part, though, “by exceedingly accommodative monetary and fiscal policies,” according to Kling — who added that’s set to change this year.&nbsp;



“The future couldn’t be brighter. But it’s also still highly uncertain,” he wrote.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“It is far from set in stone whether this technology and asset class will deliver on all of, some of, or none of its potential to make the world a better place,” Kling said.</blockquote>



Prior to co-founding Ikigai, Kling worked as a portfolio manager for Point72 Asset Management. Before that, he spent time at the energy-focused asset manager Magnetar Capital.&nbsp;



Ikigai’s chief executive officer is Anthony Emtman, who previously worked for video-focused company <a href="https://studio.jogg.co/">Jogg</a>.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



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