Incoming Fed Chair's Portfolio Reveals Crypto Investments, Details Emerge

Kevin Warsh, the nominee to lead the Federal Reserve, has filed a comprehensive financial disclosure, shedding light on his personal investments, including those in the crypto space. The 69-page document, submitted to the U.S. Office of Government Ethics, outlines combined assets of at least $192 million, with his wife. Notably, Warsh's portfolio includes positions in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. He has pledged to divest most of these holdings. The disclosure reveals that Warsh's crypto and blockchain-related investments are concentrated in two fund structures: DCM Investments 10 LLC and a series of funds labeled AVF I, AVF II, AVF III, and AVGF I and II. His investments include DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, and crypto investment and financial infrastructure. Warsh previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. Most of his crypto positions are reported without dollar values, indicating they are small venture bets. However, he holds over $100 million in Juggernaut Fund LP and dozens of positions in THSDFS LLC, which will require full divestiture. The mandatory divestiture and recusal obligations may constrain Warsh's ability to act on his sympathies towards the crypto industry, at least in the first year. The disclosure has sparked questions about potential conflicts of interest and how Warsh's personal investments may influence his decisions as Fed chair. The Senate Banking Committee is expected to hold a confirmation hearing next week, where Warsh's crypto holdings will likely be a topic of discussion.