Establishing a fund? Cryptocurrency focused
Wondering if anyone here has experience establishing an entity for investment purposes. This would be more like a family office than a hedge fund, but focused on crypto and decentralized finance (DeFi) so with all that risk, let's call it a hedge fund.
Backstory: I've been a crypto fan for a long time, and recently got into all the DeFi protocols and such just for myself. In talking about it with family & friends, it's clear they have interest and are eager to give me money to do it for them.
The idea is very appealing to me. However, I imagine it would be a tax nightmare if a group of people gave me $1 million and I made tons of money investing in my own name. The obvious solution is to set up an LP, LLC, or whatever and act as the general partner/manager.
Is there anyone who's gone through this process (or something similar) and could offer some advice on how to get started?
My initial questions are:
Do I incorporate in Delaware? Or Wyoming, with its crypto-friendly environment given the nature of the assets under management?
How early and how often to involve lawyers in the process?
With an entity established, capital raised and deployed into investments, does that immediately grant the status "institutional investor" or is there more?
Thanks in advance for any help!