Of late a number of individuals and businesses have been entering the blockchain and cryptocurrency markets. Considering the pace at which the industry is growing, everyone wants a piece of that crypto-pie. The latest name to enter the cryptocurrency markets is William Mougayar, the author of ‘The Business Blockchain’ who is all set to start off an investment fund for companies and startups dealing with blockchain and cryptocurrencies.
Coindesk reports that Mougayar will head up the new entity, dubbed JM3 Capital, under the Blockchain Technology Ventures division, which is being spun off from Switzerland-based Jabre Capital Partners. This new branch which will be headed by Mougayar deals with investments in blockchain startups, as well as a few tokens and publicly tradable cryptocurrencies.
The fund’s investment strategy will be based on a crucial analysis of how the products or the tokens that they are investing in will perform over the long run. Mougayar stated that:
"The strategy that we outlined is to do standard VC-style investments in blockchain companies. We'll find those companies that are doing some very interesting work in the space. And, secondly, it's to be involved in those that are creating the token-based protocols. Thirdly, it's to invest in cryptocurrencies that are undervalued, so more of a buy-and-hold strategy."
Mougayar has stressed on the fact that Blockchain Technology Ventures is not a hedge fund, but is instead a classic Venture Capitalist fund which invests with a long-term vision of the markets in mind. Mougayar revealed that the company plans to launch their first official fund in July,
Crypto-Focused Hedge Funds and VC Funds on a Rise
Over the past few months, there has been a significant rise in the number of cryptocurrency funds. A number of businesses are setting up either venture capital funds or hedge funds for investment. Looking at how the industry has been booming and the massive profits that crypto-businesses are making, a number of entrepreneurs and finance gurus have found this to be a rather exciting opportunity to invest in. Mougayar-led Blockchain Technology Ventures too is capitalizing on the crypto-wave at just the right time.
A number of major players, including the likes of Rockefeller-backed VC firms too, have started entering the markets when it comes to VC firms. Hedge Funds are growing with every passing day as reports from earlier this year indicate that the number of hedge funds has doubled in 4 months over late 2017 to early 2018.
Mougayar, the author of the business blockchain appears to be quite excited about this project. He stated:
I think this is going to be significant – it’s good to see more regulated funds. It’s good to see more regulation in this space because it brings more credibility to the market and a regulated fund lives up to higher standards – that’s good for investors.
This is an interesting time for the crypto-markets. With more major players coming into the industry and with their expertise, this is only going to help the industry gain more legitimacy and more credibility at a time when governments are looking at it with scrutiny and suspicion.