One of the leading venture capital firms in Silicon Valley, Andreessen Horowitz, is preparing to launch a new fund that will focus on buying and selling of crypto assets.
Rumours have been rife that the firm is in the process of starting a crypto-focused fund. The recent development is not a huge surprise as the firm has invested in different crypto-related ventures like Coinbase, Earn.com and CryptoKitties. Indeed, co-founder Marc Andreessen is a big crypto advocate.
The current development came to the light after Recode first spotted two jobs posted on the Menlo Park-based company’s website, which are for a “separately managed fund focusing on crypto assets”.
One of the job vacancies is for a legal counsel, crypto assets, and explicitly details that one of the tasks includes compliance with the necessary SEC regulations and particularly managing the firm’s fund compliance with all SEC andother regulations.
The other vacancy is for a finance and operations manager, crypto assets, whose major task will be valuing crypto assets among other responsibilities.
Opening the Door for Others
While there are many people investing in crypto, not many traditional venture funds have entered the market. However, a few have joined the fray; in some cases, being involved in Initial Coin Offerings (ICOs), but the industry is yet to witness a stampede.
The more prolific crypto investors have been dedicated funds like Pantera Capital, Polychain Capital and Sparkchain Capital. Most of these firms hold crypto assets, mostly in Ethereum, in order to invest and divest in company tokens and cryptocurrencies as part of ICOs, or just generally as retail investors do.
While there is the potential for huge gains, as has been demonstrated by Pantera’s 25,000% returns, and the capability to liquidate an investment at any particular time, the crypto market remains in a state of uncertainty due to the pending regulations by the SEC.
The uncertainty surrounding the pending SEC regulations has kept majority of US investors out of the crypto market, with many preferring personal investments. It is widely expected though, that if Andreessen Horowitz’s plans for a new crypto focused fund go through, it will lead to others coming to the market.
Meanwhile, Andreessen Horowitz is not the first major traditional financial institution to explore the possibility of funding crypto assets. Recently, Morgan Sachs and Barclays Banks have announced they are considering starting a desk that will focus on crypto assets too.
CNBC reports that Andreessen Horowitz did not immediately respond to their request for confirmation of the move to recruit the two new employees, or if the company is in the process of starting a crypto assets dedicated fund.
Do you think the latest move by Andreessen Horowitz to recruit new employees to focus on crypto assets is geared towards starting a new crypto fund? Please let us know in the comments section.