RockawayX acquires Relayer Capital to expand crypto offerings in US

Cryptocurrency investment firm RockawayX has acquired crypto hedge fund Relayer Capital to add long and short strategies to its existing platform and expand its presence in the U.S.

RockawayX, which has roughly $2 billion in assets under management, announced Tuesday that Relayer will be rebranded as the RockawayX Liquid Opportunities Fund, which will focus on identifying "undervalued liquid tokens and crypto-related equities." 

Following the acquisition, Relayer founder Austin Barack will join RockawayX as CIO of the fund, according to the statement. The company is looking to raise $150 million for the vehicle, according to a Forbes report, citing sources familiar with the matter. 

According to the statement, Relayer's liquid strategy has delivered a net return of roughly 70% year-to-date, outperforming an equal-weighted basket of bitcoin, ether and solana by 86% as of Aug. 21.

"The strategy uses long and short positions, including pair trades, to express fundamental views on crypto tokens while reducing broader market exposure when appropriate," the company said.

Regaining momentum

RockawayX CEO Viktor Fischer said that this is the "right moment for the strategy."

"There are now crypto businesses with real revenues and strong fundamentals that we can underwrite, yet the market is still inefficient and misprices them. That is a great setup for active investors."

The deal comes amid a recent crypto rally, which saw bitcoin (BTC) record its largest dollar-denominated weekly gain in history last week. Bitcoin dropped 1.68% over the past 24 hours to $79,064 after briefly reaching a high of around $81,000 yesterday, according to The Block's BTC price page.

"I believe we have seen clear signs that crypto markets have bottomed," Barack said in the statement. "The current setup presents opportunities similar to the emergence from prior bear markets in 2020 and 2023 when we saw major positive price re-ratings."