Venrock, a venture capital firm associated with the Rockerfeller family, is investing in digital currencies. The VC firm will form a partnership with CoinFund, a virtual currency investor group, with a view to assisting entrepreneurs launch blockchain-based businesses. Venrock boasts of assets under management valued at approximately $2.6 billion. Combined the entire Rockerfeller family?s is estimated to be worth close to $1 trillion.
According to a partner at Venrock, David Pakman, the VC firm is interested in investing for the long-term in the digital currency and blockchain technology sector rather than in making short-term gains.
?There are a lot of crypto traders in the market. There are a lot of cryptocurrency hedge funds. This is different. In fact, to us, it looks a little bit more like venture capital,? said Pakman.
Based in New York CoinFund was started in 2015 and has invested in several blockchain projects and this includes the maker of instant messenger app Kik. CoinFund and Venrock initially collaborated on a mutual investment, YouNow which is a maker of a live video-streaming app. YouNow has since then pivoted to crypto.
Other prominent blockchain projects that CoinFund has backed include CoinList which is a startup whose goal is to assist companies in undertaking Initial Coin Offerings that comply with regulations. Recently CoinList raised approximately $9.2 million in a fundraising round.
Besides CoinFund other cryptocurrency funds which participated in the round include Blockchain Capital, Libertus Capital, FBG Capital, Digital Currency Group and Polychain Capital.
Soros Fund Management
Other than the Rockerfeller family another billionaire who is preparing to trade virtual currencies is George Soros. According to reports Soros Fund Management which manages assets amounting to $26 billion is making plans to trade in virtual assets. This is after the firm?s head of macro investing, Adam Fisher, received the approval require to make the investments.
This is coming a few months after Soros railed against digital currencies during the World Economic Forum in Davos earlier in the year. Then Soros said that virtual currencies can neither be a means of exchange like fiat currencies due to their volatile nature. Since Soros made the comments the price of Bitcoin (BTC) has fallen by over 40%.
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