Despite the recent decline of the cryptocurrency market, the promise of huge profits continues to lure investors to funnel some of their funds into these digital coins. Recently, the New York-based venture capital firm Union Square Ventures (USV) officially announced its investment in Multicoin Capital, which is a cryptocurrency hedge fund startup.

USV’s Multicoin Capital investment was confirmed by the venture capital firm’s founder Fred Wilson on Wednesday. At the moment, the company did not disclose the actual amount involved. However, a spokesperson for the fund noted that, with USV’s infusion, total assets being handled by Multicoin rose to $75 million. This is a substantial increase from its March 2018 level where the fund was valued at $50 million after its most recent fundraising.

USV seems to be betting big on the cryptocurrency market and the blockchain industry as a whole. Its Multicoin infusion is actually the firm’s sixth investment in a cryptocurrency fund as well as its ninth investment in the blockchain industry. 250

Meanwhile, Multicoin expects that its ongoing funding round will raise as much as $250 million by the end of this month. Despite the recent correction, the fund remains optimistic on the long-term prospect of the cryptocurrency market and is focusing on big institutional and individual investors to meet its funding target.

Among the crypto hedge fund’s leading investors is the well-known venture capitalist Marc Andreessen, who is also Multicoin’s managing partner and co-founder. PayPal CEO David Sacks and Color Genomics co-founder Elad Gil were also reported to be among the fund’s big investors.

With the increasing acceptance of cryptocurrencies as an investment option among corporations and institutional investors, crypto funds such as Multicoin have been making their entry en masse almost overnight. Currently, there are around 225 crypto funds all over the world with an estimated combined value between $3.5 and 5 billion.

Crypto Hedge Fund Multicoin Valued at $75m After Fred Wilson’s VC Investment was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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