Cryptocurrency hedge funds are crawling out of the woodworks right now. A lot of these investment vehicles have locked on to Bitcoin and the top altcoins as of right now Multicoin Capital, a new cryptocurrency hedge fund, has raised close to $250m in funding. This seems to indicate a lot of VC firms see a bright future ahead for the cryptocurrency industry.
More cryptocurrency hedge funds can only be a good thing. Especially if these investment firms focus on cryptocurrency for the long haul. Multicoin Capital seems to check the right boxes in this regard. Their current plan is to run long-term cryptocurrency investments for up to four years at a time. Setting up this hedge fund requires a lot of capital though. That money has now been secured through a $250m funding round.
Multicoin Capital Gets Plenty of Support
It seems most of the VC firms investing are known for cryptocurrency-related investments. Andreessen Horowitz, for example, is a well-known cryptocurrency and blockchain investment firm. There’s also Chris Dixon, Elad Gil, Kyle Samani, and David Sacks. All of these individuals see a lot of merit in cryptocurrency. Rather than aim for quick profits, the long-term strategy will work wonders for Multicoin Capital.
Kyle Samani is very bullish on cryptocurrency as of right now. In his opinion, the next wave of serious investment will effectively push all prices to new all-time highs. Multicoin Capital sets an interesting precedent as to how hedge funds should approach cryptocurrency Three to four-year-long investments seemingly makes a lot more sense. It is also the way regular investors and speculators should approach this industry as of right now.
It will be interesting to see how this news affects the cryptocurrency ecosystem. With all markets struggling for traction, something has to give. Right now, the recent dip is being bought and the markets seemingly start to recover. If more institutional money finds its way to cryptocurrency, things will get very interesting. Multicoin Capital is well worth keeping an eye on in this regard.
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