Andreessen Horowitz A16Z Crypto Hedge Fund
Many financial institutions have stayed away from cryptocurrency but not Andreessen Horowitz . The Silicon Valley venture capitalists are on its way to start their own cryptocurrency hedge fund.
This is not the first time Andreessen Horowitz have cryptocurrencies. The firm has invested in Coinbase, Chia, and Earn.com and is recently joining crypto exchanges in the US to appeal against the SEC’s unruly classification of digital assets which presumably impedes development. This move could be a significant broadening of the high-profile firm’s mission and would serve as another big industry moment as investors seek to capitalize on the flurry of activity in cryptocurrencies, which some see as the next wave of innovation.
Andreessen Horowitz is looking for a new manager to handle “all financial operations relating to a separately managed fund focusing on crypto assets,” according to the job posting. The company is also looking for legal counsel to handle all regulatory aspects of the new fund, the job posting said.
Andreessen Horowitz most recent fund raised $1.5 billion to focus on early-stage and mid-stage-growth tech companies. Investors in Andreessen’s crypto fund are likely to be big believers in digital assets, or at least are comfortable with some risk in an uncertain legal and financial environment.
A number of traditional VC funds have invested in crypto companies and, in a few cases, joined initial coin offerings (ICOs), but there hasn’t been an overwhelming. The more prolific crypto investors have been dedicated funds like Pantera Capital, Polychain Capital, and Sparkchain Capital. Those firms hold crypto assets, most of which is in Ethereum, in order to invest and divest in company tokens and cryptocurrencies as part of ICOs or just generally as retail investors do.