Institutional interest in crypto continues to rise amid struggling prices
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(Kitco News) – Institutional interest in cryptocurrencies continues to grow at an unprecedented pace as some of the world’s largest investment firms delve deeper into financing crypto projects.
Nomura Holdings, one of Japan’s largest investment banks, is the latest firm to dive into crypto with the launch of a new venture capital unit that will specifically focus on digital assets.
The new entity has been named Laser Venture Capital and will concentrate on investing in projects in the decentralized finance (DeFi), centralized finance (CeFi), web3 and blockchain infrastructure sectors of the crypto market.
Laser Venture Capital will be the first product to launch from Nomura’s new digital asset business, which has been called Laser Digital. The bank is planning two further launches related to secondary trading and investor products.
Nomura first revealed its plans to create Laser Digital in May, saying the entity will provide institutional clients and investors with products and services related to cryptocurrencies, stablecoins, DeFi, NFTs and other tokens. The bank’s holding company for its crypto business, Laser Digital Holdings AG, is incorporated in Switzerland.
Playing offense when others are on defense
In Hong Kong, billionaire Adrian Cheng’s VC firm C Ventures is reportedly planning to raise a new $200 million fund dedicated to investing in the crypto space.
C Ventures is not new to the crypto scene and has investments in, among others, Animoca Brands, RTFKT Studios and Matrixport. The firm’s hedge fund strategy focuses mainly on crypto trading, according to Cheng, and it has rejected approaches from angel funds or seed-stage firms because they have high valuations and limited upside.
Aside from the new crypto fund, C Ventures is also dedicating $300 million to investments in private equity and private credit strategies over the next 18 months.
C Ventures appears to be heeding Warren Buffett’s advice to “Be fearful when others are greedy and greedy when others are afraid” by entering the market when prices are at their lowest level in over a year.
“When people are on defense, we’re on offense,” Ben Cheng said. Such an environment will historically “yield the best result,” he continued, adding that he sees a bounce back after another 6 to 9 months.
According to Cheng, the value of the firm’s existing crypto investments increased by 40% in the first half of this year after doubling last year.
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