Another Billion Dollar Venture Fund Launched for Crypto Investment

While the market is bearish, money is flowing into the market. But the former Citigroup executive’s latest fund is in preparation for a crypto winter “within 2-3 years on the horizon.”


While the $2.7 trillion market has been taking a break from an uptrend this month, money continues to flow as another billion-dollar crypto fund gets launched.

Former Citigroup executive Matt Zhang is launching a $1.5 billion venture fund Hivemind Capital Partners focused on cryptocurrency-related investments.

Zhang said his investment firm had received “a decent amount of interest” from qualified institutional investors, including sovereign wealth funds, family offices, pensions, and endowments.

“We believe blockchain technology is a paradigm shift, and we are still in the early innings. Our mission is to provide start-to-finish capital and infrastructure solutions to visionary entrepreneurs and category-defining crypto projects.”

Earlier this month, Coinbase co-founder Fred Ehsram and Matt Huang, former partner of Sequoia Capital, launched a record $2.5 billion new VC crypto fund, which topped the $2.2 billion investment fund announced by Andreessen Horowitz in June.

Hivemind Capital Partners meanwhile expects to add four to five more partners in the next 6-12 months. Citigroup itself is looking to hire 100 people to bolster its digital assets team.

The firm will be investing in four key strategies viz. risk and return management, venture capital, cryptocurrency trading, and “play to earn,” for which it has onboarded ex-Goldman Sachs analyst Sam Peurifoy to lead a dedicated “play-to-earn” strategy.

For this, they have also chosen Algorand as their first strategic partner.

Hivemind’s play-to-earn strategy will begin with building and expanding gaming communities. “We can put a great deal of care into planning ahead for how we can best support members of society” to help them potentially migrate to a digital ecosystem where they can live and earn money, said Peurifoy.

The new funding could also be in preparation for a downtrend as Zhang, who plans to run the funds’ crypto trading arm himself, said he expects the arrival of a “crypto winter.”

“Within two years, three years on the horizon, there will be a huge trading opportunity — market volatility will go up and down.”

But it is hard to be bearish in the current environment when so much money is flowing in the crypto market as investment firm CMS Holdings tweeted,

“I will simply not become bearish till we stop having billion-dollar raises every week.”

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