Hyla Fund Eyes Latin America as Crypto Frontier, Aspires to Be the ‘Goldman Sachs of Digital Assets’

Hyla Fund Management, with $115 million in assets under management, is launching a crypto fund focused on Latin America, aiming to capitalize on the region’s untapped potential. Co-founder and CEO Paola Origel views Latin America as a prime growth area for cryptocurrency investments and believes the new fund can address gaps in the local venture capital ecosystem.

“Major players like Sequoia and a16z have tried to break into this market, but it’s fragmented and culturally complex,” said Origel. “Success here demands local expertise—people who understand the market intricacies and can guide founders effectively.”

With 17 years in the finance sector and a spot among the top 50 women leaders in investment management, Origel is well-positioned to navigate the challenges of the region. She has carefully selected three experienced fund managers based in Mexico City to manage the initiative, which will officially launch in January 2025.

Overcoming Investor Skepticism

Educating investors remains one of Hyla’s biggest hurdles. “In Latin America, many investors are still hesitant about crypto because it lacks a tangible presence like gold or real estate,” Origel explained. “We’re working hard to change this perception by demonstrating how blockchain technologies can create real-world value.”

A Fund of Funds for Crypto

Hyla operates as a crypto “fund of funds,” pooling investments to gain diversified exposure across various crypto hedge funds. Origel emphasized that this structure offers traditional investors an accessible entry point into the complex and often fragmented crypto market.

“Our strength lies in access,” Origel said. “We have connections to top fund managers worldwide, each specializing in areas like Bitcoin layer-2 development or DeFi innovation. This allows us to identify and invest in high-potential strategies globally.”

Hyla’s comprehensive approach extends to direct communication with fund managers and the founders of their portfolio companies, giving the firm a unique vantage point on emerging trends and opportunities in the crypto ecosystem.

Transforming Latin America’s Economic Landscape

Origel sees cryptocurrency as a game-changer for Latin America, with the potential to solve longstanding economic challenges. For example, crypto could revolutionize the region’s $140 billion remittance market by reducing fees and simplifying cross-border transactions.

Additionally, Latin America’s large unbanked population presents an opportunity for mobile payment and peer-to-peer solutions powered by blockchain technology. Origel also highlighted the potential of the region’s growing entrepreneurial talent and the global shift in supply chains, which is opening new economic opportunities for countries like Brazil, Colombia, and Argentina.

Broad Scope, High Ambitions

Despite the market’s early stage, Hyla is committed to building a diversified portfolio. “The crypto market in Latin America is still nascent, so we’re not limiting ourselves to any single sector,” Origel explained. “We’re focused on finding projects and teams that have the potential to create global impact, regardless of their specific niche.”

With its Latin America-focused fund set to add $30 million to its portfolio, Hyla is taking another step toward its broader ambition of becoming the “Goldman Sachs for digital assets.” By combining local expertise with global crypto market insights, Hyla aims to redefine how traditional investors approach the digital economy.