Multicoin Capital is the name of the latest cryptocurrency-focused hedge fund which has gathered some great investors and big investments in the crypto market – and raised millions so far. Some of the largest venture capital firms are behind it, all active in the technology sector.
However, what’s most interesting is that this hedge fund aims to raise over $250 million from accredited angel investors – among which a lot of VC firms. So far, it raised over $50 million and the partners include Andreessen Horowitz, Marc Andreessen, Chris Dixon, former PayPal CEO Davic Sacks, Color Genomics co-founder Elad Gill, Craft Ventures partner Bill Lee and others, according to the Fortune interview.
In the interview, the co-founder of this hedge fund Kyle Samani noted that cryptocurrencies have become a legit and a rapidly growing asset class. Therefore, the big names in this industry will keep on coming and the emergence of futures exchanges could allow Bitcoin to compete with gold in the long run.
As he explained, “What you’re seeing is the next wave of serious investment coming to an exciting, recently-legitimized asset class,” also pointing to the fact that the cryptocurrency market is still in its early phase in terms of adoption, development, liquidity and infrastructure.
Even though the cryptocurrency market is valued at somewhere below $0.5 trillion and is still relatively smaller market than gold, they have an advantage over traditional assets due to their liquidity, as Samani explained. There is no formal verification and everyone can buy a token without the need of accreditation.
“While there are lots of similarities between crypto investing and traditional startup investing, there are many differences. Most obviously, crypto assets become liquid much sooner in their life cycles than traditional private equity. In addition to liquidity, everything in crypto is open source, which requires thinking about investing in a fundamentally different way,” Samani noted.
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