June 15, 2021

Andreessen Horowitz Looking to Raise $1 Billion For a Crypto VC Fund

2 min read

Crypto Wall Street

Andreessen Horowitz, one of the largest equity capital firms is aiming to raise $1 billion for a crypto VC discover that would invest in various cryptocurrencies and growing crypto startups and issue shares for institutional financiers to acquire direct exposure to largely popular crypto assets. The choice comes on the heel of its effective crypto financial investment in the form of Coinbase, the $85 billion cryptocurrency exchange that made its launching a couple of weeks back on Nasdaq.

The prepared $1 billion crypto VC fund would business’s third crypto venture after its financial investments in Coinbase and Ripple. The existing investment in the fund would likewise make it the highest crypto fund investor amongst VC firms. The company’s share in Coinbase at its debut was $11.2 billion out of which the firm has sold $120 million worth of stake. Lots of other wall street giants have gained direct exposure in cryptocurrencies through their financial investment in fortune 500 companies such as MicroStrategy and Tesla who own Bitcoin on their balance sheet.

The Institutional Interest in Crypto Continue to Surge

The 2017 bull run was mainly brought by retail gamers while Wall Street investors were simple spectators pointing out volatility as a problem, however in the current bull season that has altered, and a few of the greatest critic and Wall Street giants have rushed to gain crypto exposure. Be it the oldest custody bank in the US BNY Mellon or former critic JP Morgan and Goldman Sachs.

In absence of a managed crypto investment vehicle in the United States, wall street giants have actually relied on private funds and VC funds that buy cryptocurrencies and then issues share against it for institutional financiers to purchase. The largest crypto fund from Grayscale is estimated to be worth $45 billion. Many organizations are eagerly waiting for the approval of the first Bitcoin ETF in the US to be able to purchase a certified crypto index.

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