Silicon Valley venture capitalist Andreessen Horowitz (A16Z) is well on its way to start their own cryptocurrency hedge fund. The bold development comes in the wake of subpoenas sent to more than 80 ICOs and crypto-investment firms solely in the United States.
Marc Andreessen, one half of A16Z, is amongst the small set of institutional investors showing considerable interest toward the cryptocurrency sector. Andreessen is no stranger to crypto – his firm invested in Coinbase, Chia, and Earn.com – and recently joining crypto-exchanges in the U.S. to appeal against the SEC’s unruly classification of digital assets which presumably impedes development.
According to the official A16Z careers page, vacancies at their Menlo Park office include those of a ‘Finance and Operations Manager,’ and ‘Legal Counsel’ specifically for ‘Crypto Assets.’
A16Z is certainly focussing on being fully compliant with regulations, as the legal position details a role revolving around the regulatory intricacies of the crypto market.
Image Source: A16Z
Similarly, a candidate applying for the finance and operations manager faces a highly integral role in valuing and trading digital assets, alongside consulting clients on prudent investments.
Image Source: A16Z
BTCManager spoke with Tradelize CEO Anton Zapolski, whose firm provides tools that make crypto-trading and investment opportunities accessible, about the development. Zapolski believes that a venture capital fund taking the initiative for blockchain & crypto-related developments generates further traction for the blockchain sector:
“This past month has been phonomenal for Wall Street and crypto: George Soros, VenRock, and now Andreessen Horowitz. This exhibits the potential behind digital assets as investment opportunities.”
Crypto Hedge Funds Not a Novelty
Unsurprisingly, many prolific American investors and institutional companies have taken a back seat when it comes to investing in cryptocurrency, owing to its legal disputes. However, aggressive and risk-taking funds have taken the crypto plunge, possibly allured by a potentially strong future and high-rewards.
Various traditional VC funds have opted to put money into crypto-funds such as Polychain and Pantera Capital, with some even choosing to invest in the risky Initial Coin Offerings (ICOs). Reportedly, the funds mainly use ETH as a base currency, branching out to other altcoins and ICOs when the market deems a good buy.
Report Says 1 in 5 Institutional Firms are Ready To Trade Crypto
According to a report by Thomson Reuters, “around one in five institutional financial firms have plans to start buying and selling digital tokens within the next 12 months. Of those that plan to get involved in 2018, around 70 percent intend to do it in three to six months.”
The survey, which collated responses from 400 people, found out that BTC, ETH, and XRP are prefered on an institutional level, presumably to their dominance and repute.
After bitcoin’s famed run in late 2017, which saw the digital currency almost reach $20,000 at its peak, generating a lot of mainstream interest. Perhaps the most enticed sector was that of traditional banking, in which ten percent returns in a year are considered phenomenal. In contrast to this, cryptocurrencies can give ten percent returns in each hour of a trending market.