Third Eye Crypto Fund Launches $70M With Long-Short Strategy

Third Eye, a $70 million crypto hedge fund launched by former Jefferies trader Tian Zeng, officially commenced operations on August 1, 2025. The fund targets both cryptocurrencies and related equities, employing a diversified long-short strategy designed to generate stable returns in volatile markets. Zeng, who has previously founded Phoenix Digital and worked at prominent institutions like Citigroup and Deutsche Bank, brings deep expertise in macro and credit derivatives to the fund [1].

The fund is backed by family offices and high-net-worth individuals, reflecting a growing interest from institutional investors in crypto markets. This trend is further underscored by recent market developments, including Bitcoin’s price surpassing $120,000 and the broader recovery of the crypto market cap. Zeng’s experience in distressed crypto assets—gained through his earlier role at Phoenix Digital—positions Third Eye to identify undervalued opportunities amid market turbulence [1].

Third Eye aims to evolve into a multi-strategy fund, potentially incorporating staking, yield farming, and venture allocations. The fund will also leverage advanced analytics and real-time data modeling to enhance trade execution and risk management. These strategies are expected to differentiate it from existing funds and elevate performance standards in the crypto hedge fund space [1].

Zeng’s track record and institutional-grade approach are seen as key advantages for the fund. The launch of Third Eye is part of a broader movement of professionals with traditional finance backgrounds entering the crypto sector. This shift is helping to bridge the trust gap between institutional investors and digital assets and contributing to the maturation of the crypto investment landscape [1].

With the market continuing to rebound, and regulatory clarity improving, funds like Third Eye are expected to play an increasingly important role in shaping the flow of capital into the digital asset class. As more traditional finance professionals bring their expertise to crypto markets, the sector is likely to see further institutional adoption and growth [1].

Source: [1] Ex-Jefferies Trader Launched $70M Crypto Fund (https://www.blockchain-council.org/cryptocurrency/ex-jefferies-trader-launched-70m-crypto-fund/)