The venture capital industry is gearing up for portfolio rebalancing in 2024 as investors position themselves to increase exposure to digital assets in the next bull market. Blockchain Capital, a leading venture capital firm, has recently closed two new funds totaling $580 million that will be deployed in crypto gaming and decentralized finance projects. This move highlights the growing interest and confidence in the potential of blockchain and cryptocurrency.
In addition, several prominent financial giants are also embracing Bitcoin and other digital assets. Nomura, Japan’s largest investment bank, recently launched a new Bitcoin fund through its subsidiary, Laser Digital, to cater to institutional investors’ demand for Bitcoin exposure. This signals a wider adoption and acceptance of cryptocurrency by mainstream financial institutions.
Furthermore, new players in the industry are also attracting funds. Bastion, a web3 startup, disclosed a $25 million seed round led by Andreessen Horowitz, one of the leading venture capital firms in the crypto space. This investment will bridge web3 infrastructure into enterprise technology, contributing to the further development and integration of blockchain technology.
This week’s Crypto Biz also explores the bidding process for SVB Capital, the venture arm of the collapsed Silicon Valley Bank. Final bidders including SkyBridge Capital, Atlas Merchant Capital, and Vector Capital are vying for this venture capital arm, which reportedly backs other major firms in the crypto space such as Sequoia and Andreessen Horowitz. This potential sale indicates the continued interest and investment in the crypto industry from established players.
Additionally, Canadian Bitcoin mining firm Hut 8 has received final approval from the Supreme Court of British Columbia for its planned merger with US Bitcoin. This merger will create Hut 8 Corporation, a publicly traded United States-based business with significant capacity for Bitcoin mining and data centers.
Lastly, Citigroup has introduced Citi Token Services, a private blockchain that provides cross-border payments, liquidity, and automated trade finance solutions for institutional clients. This initiative aims to streamline and enhance the efficiency of financial transactions by leveraging blockchain technology.
Overall, the venture capital industry’s increasing interest in digital assets, the adoption of Bitcoin by mainstream financial institutions, the growth of new players in the industry, and the development of private blockchain solutions all highlight the ongoing evolution and maturation of the cryptocurrency and blockchain space.