Andreessen Horowitz is a venture capital enterprise with an AUM of $16.8 billion. Recently the company has become the center of attention in the crypto community as it is getting ready to launch a dedicated crypto fund for its clients. This marks the entrance of another whale into the crypto world. According to various sources, the venture capital giant is going to invest somewhere from $800 million to $1 billion into its crypto acquisition.
This number is not surprising considering the massive gains Bitcoin endorsing companies like MicroStrategy and Tesla Inc. have been able to cash in during the first quarter of 2021. The news has been endorsed by Financial Times in an article where four reliable sources are quoted. It is not clear that how many cryptocurrencies would be added to the Andreessen Horowitz crypto fund. However, it is pretty obvious that, like most institutions, that fund would not start without Bitcoin and Ethereum.
Coinbase has given Venture Capital Firm the Confidence to Pursue Crypto Investments
Coinbase public listing is a remarkable achievement for the entire crypto market. Meltem Demirors, CoinShares CSO, said that Coinbase IPO is going to leave behind a trail of millionaires and billionaires. This listing would work as a major endorsement for cryptocurrencies and create many fans who would want to explore more crypto staking options. It seems like Andreessen Horowitz is the perfect personification of this statement.
The amount that the venture capital company is going to pour into its crypto fund is not from the personal reserves. The financial enterprise uses the gains made from Coinbase shares trading. The largest non-crypto stakeholders in Coinbase are Andreessen Horowitz and Union Square. Demirors also claimed that the conventional companies would recognize the potential of the crypto markets and use their initial gains to create more opportunities, which seems to be the case in this scenario.
With the entrance of new investors, the crypto markets are usually appreciated. However, this is not the first time the VC giant is going to invest in cryptocurrencies. Last year the enterprise launched a Crypto Fund II that was worth $515 million. This would be the third time that American venture capital firm would be raising stakes in cryptocurrency markets.
Since Coinbase has gone public, the VC enterprise has uploaded $120 million from its reserves into the world’s leading crypto exchange. These numbers have been confirmed through the regulatory filings of the company. Coinbase has gotten a great response from crypto and non-crypto enterprises after its NASDAQ listing, and it has now reached an evaluation of $60 billion.