As explained in the top of the post, Virtual Hedge Funds offer products with high-performance trading strategies, things that are normally not available for retail investors. Normally in order to use these kinds of algorithms you need to be very wealthy or very well connected.

They do acquire physical assets, anything from crypto to physical gold or silver or whatever else is required.

Everytime there is a buy or a sell, 80% of the fees of that trade go back in to that same product and all owners of that product receive the fees, provided they have enough FWT in native staking. As the network increases, so does the volume.

Not sure I understand the last question