BCV plans a $560M Crypto-focused Fund; is it a bet on the future?

Biraajmaan Tamuly
Source: Pixabay

While crypto-currency assets might be struggling to register a bullish rally, one of the largest start-up investment firms made its intentions clear. According to Bloomberg, Bain Capital Ventures, the investment arm of private equity firm Bain Capital, is launching a $560 million worth crypto-focused fund. The objective of this fund is to invest in the development of digital asset services. Additionally, the firm is planning to invest in 30 more crypto-focused start-ups in the next 2 to 3 years.

$100 million already invested in un-disclosed Crypto companies

This isn’t Bain Capital Ventures’ first crypto-focused investment. BCV has injected capital in the likes of BlockFi, Compound, and Digital Currency Group, which in turn runs several crypto-related enterprises. However, the current BCV fund is solely focused on market development. Stefan Cohen, Managing partner and head of the fund at Bain Capital Crypto, stated,

“We’ve become quite high conviction we are at the beginning of a multi-decade technology shift. We really needed a dedicated team and a dedicated fund structure. That’s really what lead to the addition of Bain Capital Crypto.”

Now, market speculators were skeptical about whether and if Bain Capital will continue its positive sentiment through a bearish market. Alex Evans, another managing partner at Bain Capital Crypto dismissed such qualms. He said,

“We are unfazed and in some ways uninterested in short-term market gyrations. We embrace the uncertainty of this market, we are long-term believers. When the certainty is there, it might be too late for this market.”

A Strong Vote of Confidence?

4 to 5 years back during Crypto’s 1st bull-run in 2017, such development was seldom raised from reputed institutions. The fact that BCV is eyeing the fund structure and investment roadmap for 10-20 years is an extremely positive development. While the impact is least likely to cause a bull market, such expansions lead to better propagation of knowledge and wider acceptance for digital assets.

Presently, Bain Capital Ventures joins the bandwagon with Sequoia Capital, which committed towards a $600 million Crypto Fund back in February 2022.