If people want to start this fund in the US, I think the bigger question is it's not completely clear what the taxes are and how they work for cryptocurrencies,

If people want to start this fund in the US, I think the bigger question is it's not completely clear what the taxes are and how they work for cryptocurrencies, etc. In this case while Cayman tax rates are highly favorable, it's not clear how much of a factor that is, and how much of a factor just not knowing which instruments count as which type of investment and what the taxes actually are is. If you pay out to your clients then find out one investment was misclassified because of later regulatory clarification then you can easily end up having failed to withhold millions of dollars with severe legal consequences. Very few of the people moving money to the Cayman pay $0 in taxes because returning the money to the US is subject to tax events and it takes very complicated legal structures like those in Ireland or Netherlands to get money in the Cayman to not be double taxed since the US and Cayman don't actually have a tax treaty.