Venture Capital Giant Is Planning to Raise $1 Billion to Invest In Cryptocurrencies and Startups

Venture Capital Giant Is Planning to Raise $1 Billion to Invest In Cryptocurrencies and Startups

Andreessen Horowitz, a venture capital giant, is looking to raise as much as $1 billion in cryptocurrencies and crypto startups.

This new fund aims to raise between $800 million and $1 billion from investors, reported the Financial Times, citing people familiar with the matter.

With this latest move, one of Silicon Valley’s highest-profile venture capital firms is introducing one of the largest pools of capital to crypto, potentially twice the size of its predecessor — its third crypto fund, which raised $515 million a year ago.

After the success of Coinbase, currently valued at about $60 billion down from the initial brief valuation of $100 billion, institutional investors such as endowments and foundations are now renewing their bet on the technology.

Founded in 2009 by Marc Andreessen and Ben Horowitz, the venture capital firm, which was also an early investor in Coinbase along with Ripple through traditional funds, was managing $35.8 billion in regulatory assets at the end of last year.

Its latest fundraising would rival the capital raised by Paradigm, a crypto investment firm founded by Coinbase co-founder Fred Ehsram and former Sequoia Capital partner Matt Huang in 2018.

Paradigm has raised $1 billion from investors, including endowments of Harvard and Yale universities.

Another one, Pantera Capital, aims to raise $600 million for a new blockchain fund that will combine investments in private companies and tradable tokens. Its last venture fund raised $175 million in 2018, which surged 3.8x in January this year.

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Author: AnTy

Wealthfront Allows Clients to Invest in Crypto; Germany Passes Legislation on Spezialfonds

Wealthfront Allows Clients to Invest in Crypto; Germany Passes Legislation on Spezialfonds to Allocate 20%

Wealthfront is the latest one to start allowing its clients to invest in cryptocurrencies later this year.

The US digital wealth manager with $16 billion in assets under management said starting this week; users will be able to build their own portfolio from a range of ETFs vetted by their team.

This a notable shift for Palo Alto, a California-based startup that has been traditionally more conservative and long term. It is not yet known which cryptos would be available.

Dan Carroll, co-founder, and chief strategy officer of Wealthfront, said the changes reflected a growing desire from Millennial and Gen Z investors to make investment choices.

“Wealthfront will be the place to invest responsibly, not some Wild West arcade,” Carroll said. “We can do it in a fiduciary way. We care what is in your best interests. We won’t let you put 100% of your portfolio in crypto.”

The company, which has around 357,425 accounts, will also continue to rebalance portfolios automatically and tell users about the impact their investment choices have on their risk level.

Amidst this growing adoption of cryptos, big news came from Germany, where new legislation allows the managers of popular institutional investment funds, Spezialfonds, to allocate 20% to crypto assets.

The law that cleared federal parliament last Thursday will come into force on July 1, which further legitimizes the asset class and boosts the cryptocurrency industry in the country.

According to market experts, this could release huge sums of money as it allows thousands of existing investment funds to invest in Bitcoin and other crypto-assets.

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Author: AnTy

UK Hedge Fund Brevan Howard Plans to Invest 1.6% of $5.6B Capital in Cryptocurrencies

UK Hedge Fund Brevan Howard Plans to Invest 1.6% of $5.6B Capital in Cryptocurrencies

European hedge fund Brevan Howard Asset Management is reportedly planning to invest part of its capital in Bitcoin, according to Bloomberg.

Hedge Fund Joins League of Institutional Investors

Per the report, the firm is set to invest up to 1.6% of its $5.6 billion capital in cryptocurrencies. This translates to about $84 million soon to be allocated into digital assets.

Co-founders of crypto investment firm Distributed Global, Johnny Steindorff and Tucker Waterman, will oversee the crypto purchase for Brevan Howard.

Brevan Howard plans to have a diversified portfolio of cryptocurrencies; not just Bitcoin (BTC) and Ethereum (ETH).

The billionaire co-founder, Alan Howard has been investing in cryptocurrencies with his personal investments. He joins the likes of wall street heavyweights backing cryptocurrencies.

Howard owns a significant stake in European cryptocurrency asset manager CoinShares. He has also led and participated in many funding rounds for crypto startups. These include European companies such as Komainu and Nextmarkets.

More To Come, Less To Go

With the increasing debut of institutional investors in cryptocurrencies across the world, experts believe that more will come in and less will go because of the rising value of Bitcoin. At press time, Bitcoin trades at $61,896, still down 1.6% in the last 24 hours.

A survey report conducted by Glassnode showed that there was about 4 million Bitcoin in circulation, a feat that has never happened before.

The report added that the sharp rise in the demand for digital assets might lead to a massive supply squeeze in the meantime, which is capable of pushing the price higher.

As a result, the coins being mined are not even enough to meet the people’s demand. Most experts believe the short squeeze is also a factor driving crypto prices.

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Author: Jimmy Aki

JPMorgan, Mastercard, & UBS Invest in ConsenSys’ $65M Round to “Accelerate the Convergence” of DeFi and Traditional Finance

JPMorgan, Mastercard, & UBS Invest in ConsenSys’ $65M Round to “Accelerate the Convergence” of DeFi and Traditional Finance

ConsenSys, an Ethereum software company, announced the closing of a $65 million round to “accelerate the convergence” of DeFi and Web3 applications on Ethereum.

The companies that took part in this funding involve J.P. Morgan, Mastercard, UBS, Protocol Labs, the Maker Foundation, Fenbushi, The LAO, and Alameda Research.

“Enterprise Ethereum is a key infrastructure on which we and our partners are building payment and non-payment applications to power the future of commerce,” said Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain Products and Partnerships at Mastercard.

Other investors include CMT Digital, Greater Bay Area Homeland Development Fund, Quotidian Ventures, and Liberty City Ventures.

Interestingly, several funds invested with Ethereum-based stablecoins, DAI and USDC, read the official announcement by the tech company.

“We are proud to partner with preeminent financial firms alongside leading crypto companies to further converge the centralized and decentralized financial domains at this particularly exciting time of growth for ConsenSys and the entire industry,” said Joseph Lubin, founder of ConsesnSys who co-founded Ethereum. ETH 7.13% Ethereum / USD ETHUSD $ 2,302.61
$164.187.13%
Volume 29.46 b Change $164.18 Open $2,302.61 Circulating 115.46 m Market Cap 265.85 b
3 h CoinList’s Rally Network Liquid Token Sale Attracts 40k Users to Buy $22 Million in RLY 5 h JPMorgan, Mastercard, & UBS Invest in ConsenSys’ $65M Round to “Accelerate the Convergence” of DeFi and Traditional Finance 8 h CoinShares is Launching an XRP ETP (XRPL) as the Digital Asset Nears $2

The company currently has a headcount of 360 and plans to add another 100 employees by the end of this year.

ConsenSys’ list of products includes MetaMask with over 3 million monthly active users across, more than 150,000 developers use Infura’s APIs, and millions of developers using Truffle to create and deploy smart contracts. Meanwhile, its Protocols group, which develops Hyperledger Besu and Quorum, is building Central Bank Digital Currencies (CBDCs) for six central banks.

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Author: AnTy

A New ETF is Filed to Invest in Companies Having Direct or Indirect Exposure to Bitcoin

But the Valkyrie Innovative Balance Sheet ETF Fund has no plans to invest in Bitcoin directly or indirectly through derivatives.

Valkyrie Digital Assets has filed for an exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC) that would invest in companies that have Bitcoin on their balance sheet or are indirectly dealing with the cryptocurrency.

A Form N1-A has been filed for Valkyrie Innovative Balance Sheet ETF in partnership with KKM Financial, which is the investment advisor of the fund, and for the distributor of the fund, the company has chosen institutional asset manager SEI. The document reads,

“The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest principally in the securities of operating companies… that directly or indirectly invest in, transact in, or otherwise have exposure to bitcoin or operate in the bitcoin ecosystem.”

The Bitcoin ecosystem is defined here as trading platforms, miners, custodians, digital wallet providers, companies that facilitate payments in bitcoin, and companies that provide other technology, equipment, or services to companies operating in the ecosystem. However, the Fund has no interest whatsoever in investing in Bitcoin directly or indirectly through derivatives.

Just today, BTC/USD has made a new ATH above $60,000.

Last week, JPMorgan Chase published a filing for an incoming debt instrument that will also invest in companies like MicroStrategy, Square, chipmaker Nvidia, and others that are involved with cryptocurrency.

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Author: AnTy

Norwegian Publicly-listed Oil Company Buys $58 Million Worth of Bitcoin

Aker has established a new unit called Seetee to invest throughout the Bitcoin ecosystem. Co-founder Kjell Inge Røk­ke calls it not investing in Bitcoin the “riskiest decision.”

Norway’s Aker ASA is establishing a new unit dedicated to investing throughout the Bitcoin ecosystem, announced the company on Monday.

The new unit called Seetee AS would have an initial capital of 500 million Norwegian crowns ($58.6 million). The company is planning to keep its liquid assets in BTC, the industrial holding company said.

Seetee has already made its first Bitcoin purchase of 1,170 BTC with a strategy to HODL.

“Aker’s de­ci­sion to en­ter Bit­coin through See­tee is the re­sult of a long and fun­da­men­tal dis­cus­sion about val­ue,” states the shareholder letter. It further calls, not investing in Bitcoin the “riskiest decision.” Aker co-founder Kjell Inge Røk­ke wrote,

“Bitcoin may still go to zero. But it can also become the core of a new monetary architecture. If so, one bitcoin may be worth mil­lions of dollars. The asym­me­try is in­ter­est­ing to a port­fo­lio.”

As of writing, Bitcoin is trading around $51,000.

Besides using Bitcoin as a treasury asset, the company will also build and in­vest in projects and companies in Bit­coin’s ecosystem.

The unit will also establish mining operations and integrate blockchain technology with Aker’s industrial operations. For this, the company would collaborate with Canada’s Blockstream. Aker ASA Chief Executive Oeyvind Eriksen said,

“These technologies have the potential to reduce frictions in our day to day lives, enhance the security of our digitally-driven economies, and unlock new business models for innovation.”

Aker, controlled by Norwegian billionaire investor Kjell Inge Roekke, derives most of its income from the oil and gas industry. And the company doesn’t see “a long-term problem related to Bit­coin’s electricity consumption.”

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Author: AnTy

Former CFTC Chairman, Giancarlo & Billionaire Lasry Invest in Crypto Asset Manager, BlockTower

Former CFTC Chairman, Giancarlo & Billionaire Lasry Invest in Crypto Asset Manager, BlockTower

  • Milwaukee Bucks billionaire co-owner, Marc Lasry, and former CFTC Chairman, Christopher Giancarlo, invest in BlockTower, a crypto investments firm.

Bitcoin-enthusiast and billionaire, Gary Lasry and Christopher Giancarlo, the former Commodities and Futures Trading Commission (CFTC) chairman, are reportedly making an undisclosed investment in cryptocurrency and blockchain investment firm, BlockTower.

According to a report from Bloomberg, Lasry, the CEO of Avenue Capital Group, made an independent into the crypto firm, persons familiar with the matter reported. The Milwaukee Bucks co-owner declined to comment on the reports.

Known as ‘crypto dad’ across crypto circles, Giancarlo made huge progress in regulating the U.S. crypto field during his time as the chairman of the CFTC. The former CFTC boss has been vocal on developing the Bitcoin and crypto ecosystem – recently calling for the launch of a digital dollar.

Giancarlo confirmed the investment but declined to comment further or disclose the amount invested in Block Tower.

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Author: Lujan Odera

Uber CEO: We Won’t Invest in Bitcoin, Would Rather Keep the Non Existent Cash Safe

Uber CEO: We Won’t Invest in Bitcoin, Would Rather Keep the Non Existent Cash Safe

PepsiCo also doesn’t have any interest in investing in Bitcoin either, due to the digital asset being “speculative” and just like UBER share prices fell, PEP’s also took a hit, that too in spite of better-than-expected earnings and revenue.

Uber chief executive officer Dara Khosrowshahi says the company has discussed the idea of buying Bitcoin with corporate cash but “quickly dismissed” it.

After Tesla announced a $1.5 billion purchase of BTC and Twitter is also considering the option of adding Bitcoin to its balance sheet, Uber took the route that General Motors (GM) is taking, no investing in the cryptocurrency.

“It’s a conversation that’s happened that has been quickly dismissed,” Khosrowshahi said in an interview on CNBC’s “Squawk Box.” “We’re going to keep our cash safe. We’re not in the speculation business.”

However, unlike GM, Uber doesn’t have any cash to spare with their free cash flow running in the negative.

The company’s decision not to invest in Bitcoin saw the share prices of Uber taking a hit initially only to rise to $63.53 but still just 0.5% up from Wednesday’s close. Khosrowshahi said,

“The upside in our company is in the business that we’ve built, not the investments that we invest in.”

Like Uber, PepsiCo CFO, Huge Johnston, said the beverage giant has “had the conversation” but is not going to follow in Tesla, MicroStrategy, and Square’s footsteps. Johnston said,

“The conclusion we came to pretty quickly was bitcoin is too speculative for the way we manage our cash portfolio.”

Just like Uber, PepsiCo’s shares also dropped by 1.22%; they have actually been falling ever since the beginning of 2021, despite the company’s better-than-expected earnings and revenue.

The ride-hailing and food-delivery provider, Uber, however, is interested in considering the option of accepting cryptocurrencies as payment, something GM is also evaluating. Khosrowshahi said,

“Just like we accept all kinds of local currency, we are going to look at cryptocurrency and/or bitcoin in terms of currency to transact.”

“That’s good for business. That’s good for our riders and our eaters. That we’ll certainly look at and if there’s a benefit there, if there’s a need there, we’ll do it. We’re just not going to do it as part of a promotion.”

The company reported mixed fourth-quarter earnings with revenue of $3.17 billion, below what Wall Street expected. The company’s overall loss for 4Q20 was $968 million, down from a $1.1 billion loss in the same period last year.

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Author: AnTy

General Motors CEO: “No Plans to Invest in Bitcoin” But will Evaluate Accepting it as Payment

General Motors (GME) CEO: “No Plans to Invest in Bitcoin” But will Evaluate Accepting it as Payment

Ever since electric vehicle company Tesla announced that it had purchased $1.50 billion worth of Bitcoin, everyone wants to know which company will be the next to make the same decision.

Already publicly-listed, Square and MicroStrategy have done so. As we reported, even Twitter is considering adding Bitcoin to its balance sheet, but the company hasn’t made any changes yet.

So, it was only natural that people want to know if General Motors (GM) is considering the same as the company reported its fourth-quarter earnings that beat Wall Street expectations.

However, GM has no plans as such.

General Motors CEO and Chairman Mary Barra said the automaker has no plans for investing in Bitcoin. The silver lining here is that the company will be monitoring customer demand regarding accepting cryptocurrency to pay for its vehicles and services.

The company reported revenue of $37.5 billion, more than the expected $36.12 billion. GM is planning to accelerate its all-electric and autonomous vehicle development and rollout. “We are investing in the business,” Barra said.

“We see tremendous growth opportunities and we’re also accelerating EVs; $7 billion alone of the $9-$10 billion is focused on EV/AV. So we see tremendous opportunity there.”

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Author: AnTy

47% of Nocoiner Brits Plan to Invest in Bitcoin This Year: Survey

47% of Nocoiner Brits Plan to Invest in Bitcoin This Year: Survey

While those invested, 74% plan to further increase. Also, 30% of coiners expect the BTC price to exceed $100,000 this year.

Brits remain bullish on Bitcoin, with 61% of respondents of the new survey saying they expect the value of BTC to rise above $60,000 this year.

The survey was conducted by uk.Investing.com with approximately 800 respondents, 58% of who invest in Bitcoin while 42% do not. 17% of the respondents believe $42,000 hit on Jan. 8 was the top of this bull cycle.

However, those who have invested in Bitcoin are particularly optimistic as the survey revealed 30% of them believe BTC price will exceed $100,000 per coin this year.

“After a record-breaking year in 2020 that saw it jump more than 300%, Bitcoin looks to stay strong in 2021 as more retail – and big-name institutional buyers – enter the market,” said Jesse Cohen, senior analyst at uk.Investing.com. “For those already in, the strategy in place remains to HODL.”

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According to Cohen, besides the first-time investors, the ultra-cheap money that is being pumped into the global financial system by the central banks all over the world has found its way into Bitcoin as well.

When it comes to other cryptocurrencies, 83% of investors expect the value of Ethereum (ETH) to rise this year, followed by Litecoin (LTC) by 35%, Bitcoin Cash (BCH) by 28%, and XRP by 25%.

Among the surveyed Bitcoin investors, 74% are planning to increase their HODLings this year, with the majority of them having only entered within the last three months.

As for those who do not currently invest in the cryptocurrency, 47% of them plan to do so this year — 26% plan to make a £1-£1,000 investment while 21% planning a £1,000 – £10,000 investment, reveals the survey.

For the majority of Brits, 53%, the new regulatory restrictions is the biggest threat to Bitcoin in 2021, followed by a pullback leading to a large off, at 26%.

However, 46% of the respondents trust Bitcoin and other cryptocurrencies “to some extent” while 18% do so “fully.”

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Author: AnTy