Bitcoin Rally attracts wave of private investment as Lead Blockchain VC builds new $ 120 million fund

The bitcoin rally has seen the cryptocurrency climb to unrecorded heights and this is just not reflected in the markets. Away from the OTC exchanges and desks that set the price of BTC, private investor and institutional interest is growing at a rapid pace. Evidence of this can be seen in the growth of crypto venture capital, which has raised billions of dollars in 2020.

On December 23, Hashed, a Seoul-based blockchain investment firm, announced that they have raised $ 120 million for their first crypto fund. The company, led by CEO Simon Kim, plans to invest in the initial stages of blockchain concerns incorporating Ethereum-like bottom cover protocols. According to Kim, the next wave of crypto networks marks the beginning of the “protocol economy,” a time when data and value are transmitted globally by crypto networks using a shared public ledger. . He predicts strong government and institutional support for this new pattern and had no problem selling the group’s first VC funds.

Start of Circle Blockchain

Guaranteed investors are limited in terms of the crypto funds they can trade, mostly made up of BTC and ETH through regulated brokers and custodians. Blockchain funds provide another way to experience digital assets and the ecosystem they support. As bitcoin has broken new records, surpassing $ 22,000, some investors are looking beyond the 12-year cryptocurrency to bootstrapping the next wave of blockchain networks.

Data from research group The Block shows that $ 900 million was invested in blockchain start-up rates in Q3 of 2020. Investors rushed to bootstrap decentralized financial projects in particular, including the those aimed at package management, lending and production.

Public Networks Private Investor Fund

No one knows where Bitcoin creator Satoshi Nakamoto came from, with profitability taking him everywhere from London to LA. It can be said that the movement he started, based on blockchain technology, has become an endless business that is attracting huge investment across the globe. In the US, subsidiary Andreessen Horowitz a16z was founded to seek a promising crypto startup, along with companies like Pantera Capital and Galaxy Digital, led by former investor Mike Novogratz.

In Asia, meanwhile, Hashed is not alone in securing private investment to fund blockchain public networks. Several cryptocurrency exchanges have their own VC arms, including Binance and BitMax, which are tasked with nurturing the next generation of crypto companies. The symbiotic relationship often leads to the same exchanges listing the native tokens of the projects they are inspired by once they reach maturity.

It’s not just VCs that have been looking for blockchain publishing either. Family offices and hedge funds have also taken an interest in the area. Harvard University’s investment arm is one endowment fund that has already jumped into the crypto market, joining two other investors in a $ 11.5 million investment in crypto company Blockstack. It is also known that Yale University has invested heavily in cryptocurrency.

The Institute Case for Crypto

Bitcoin is going through the early stages of a new asset class, from experiencing early bubbles to attracting scammers with their fast-rich schemes. Market productivity is reduced by strong products that cater to professional audiences. Crypto is much more mature now than it was in 2017 when BTC finally reached the heights it is now trading. Today, the industry supports a healthy futures market, while bitcoin options have improved options and grip while making it vulnerable for institutional investors.

Elon Musk’s flirtation with bitcoin, which has largely tweeted crypto memes to its 41 million followers, suggests a deeper interest in digital currency. In Musk-ian usually exchange on December 20, Tesla’s CEO was inspired by Michael Saylor at MicroStrategy to follow his lead and turn some Tesla cash reserves into BTC.

“Is it even possible to do great things?” Musk pondered, to which Saycoin answered the Saylor bull in the affirmative, before offering to show Musk how.

Bitcoin’s low correlation with traditional funds has forced some investors to rebalance records that were heavy on bonds and shares, allocating a share to BTC. Bolder investors, however, are looking beyond bitcoin to the opportunities offered by new blockchain protocols, where the risk reward is higher, but so is the potential for returns on the outside.

Corporations Catch the Crypto Bug

While institutional investors have been buying bitcoin, and investing in the business created around it, companies have been experimenting with their own blockchain solutions. Hashed has given public support to Kakao, with responsibility for the development of the country’s Klatyn blockchain, and LINE blockchain, which is owned by LVC Corporation in Tokyo. Big Four accounting firm KPMG, meanwhile, has expanded its blockchain strategy, supporting Microsoft, Tomia, and R3 in developing a solution for 5G networking, and filing its patents blockchain itself.

Against the backdrop of corporate innovation and private investment in blockchain, VCs have seen crypto currency fill rapidly. This digital gold rush has inspired a thriving industry in construction and shovels – the tools and apps for interacting with the next wave of decentralized protocols.