Andreessen Horowitz, one of the largest venture capital firms is looking to raise $1 billion for a crypto VC find that would invest in different cryptocurrencies and growing crypto startups and issue shares for institutional investors to gain exposure to largely popular crypto assets. The decision comes on the heel of its successful crypto investment in the form of Coinbase, the $85 billion cryptocurrency exchange that made its debut a couple of weeks back on Nasdaq.
The planned $1 billion crypto VC fund would company’s third crypto venture after its investments in Coinbase and Ripple. The current investment in the fund would also make it the highest crypto fund investor among 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. Many other wall street giants have gained exposure in cryptocurrencies through their 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 mostly carried by retail players while Wall Street investors were mere spectators citing volatility as an issue, however in the current bull season that has changed, and some of the biggest 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 regulated crypto investment vehicle in the US, wall street giants have turned to private funds and VC funds that invest in cryptocurrencies and then issues share against it for institutional investors to invest in. The largest crypto fund from Grayscale is estimated to be worth $45 billion. Many institutions are eagerly waiting for the approval of the first Bitcoin ETF in the US to be able to invest in a compliant crypto index.