Home Bitcoin News Institutional Investors Return to Bitcoin and Ethereum with Founders Fund Leading the Way

Institutional Investors Return to Bitcoin and Ethereum with Founders Fund Leading the Way


In a resounding echo of confidence in the future of digital currencies, Founders Fund, the renowned venture capital platform backed by Peter Thiel, has rekindled its investments in Bitcoin and Ethereum. Reports indicate that the firm allocated a substantial $200 million towards acquiring both cryptocurrencies, marking a significant milestone in institutional involvement within the crypto sphere.

Sources familiar with the matter revealed that Founders Fund executed equal investments in Bitcoin and Ethereum during the middle of 2023, underscoring a growing appetite among institutional players for exposure to the burgeoning digital asset class. This move follows the fund’s strategic entry into the crypto market when Bitcoin was trading below $30,000, gradually amplifying its holdings over subsequent months.

Notably, Founders Fund’s history with Bitcoin dates back to 2014 when it emerged as one of the earliest institutional players in the crypto landscape. However, the firm opted to liquidate its holdings prior to the 2022 market downturn, securing a substantial profit estimated at around $1.8 billion, as reported by Reuters.

The resurgence of Founders Fund in the crypto space post-2022 is indicative of a broader trend in institutional interest in token investments, which had somewhat waned following the tumultuous events of the 2022 crypto winter. During this period, Bitcoin and the broader crypto market experienced a profound downturn, with Bitcoin’s price plunging to $15,000 amidst regulatory scrutiny and market volatility.

Despite the challenges encountered, both Bitcoin and Ethereum have demonstrated resilience, gradually recovering over the past year. Bitcoin recently breached the $50,000 mark, signaling renewed optimism among investors, although it remains below its peak of $69,000 in November 2021.

Peter Thiel, the visionary co-founder of PayPal and Palantir, stands as a vocal advocate for Bitcoin, extolling its virtues as a store of value akin to gold and a hedge against traditional monetary policies. Thiel’s endorsement of Bitcoin resonates with his libertarian ideals and his relentless pursuit of technological innovation.

Founders Fund’s foray into cryptocurrency investments aligns seamlessly with Thiel’s vision, as the firm manages assets exceeding $12 billion and boasts a track record of early investments in pioneering companies like SpaceX and Meta. Notably, the appointment of Joey Krug as a partner in April 2023 underscores the firm’s commitment to exploring opportunities in the crypto space.

The recent move by Founders Fund highlights a broader trend of renewed institutional interest in token investments, signaling a departure from the cautious approach that followed the 2022 market downturn. Last year witnessed a solid rebound in Bitcoin and the broader crypto market, recovering from the brutal crypto winter when Bitcoin’s price plummeted to $15,000. The industry also faced challenges such as the FTX exchange collapse and the fall of crypto lenders like Genesis and Global, leading to increased regulatory scrutiny.

Despite these hurdles, both Bitcoin and Ethereum demonstrated gradual recoveries over the past year. Bitcoin recently surpassed the $50,000 mark, although it remains below its peak of $69,000 in November 2021.

The recent launch of spot Bitcoin ETFs has further catalyzed institutional interest, offering a regulated avenue for investing in cryptocurrencies. Within the first month of launch, the combined holdings of all nine Bitcoin ETFs surged past $10 billion, indicating a growing acceptance of digital assets within traditional financial markets.

As institutional players like Founders Fund re-enter the fray, the landscape of cryptocurrency investments continues to evolve, ushering in a new era of mainstream adoption. With renewed confidence and a steadfast commitment to innovation, the stage is set for cryptocurrencies to redefine the future of finance in the digital age.

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James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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