Renewed Interest from Ultra High Net-Worth Individuals Injects Fresh Energy into Crypto VC Space: Struck Capital Founder
The crypto venture capital (VC) space is experiencing a resurgence of interest from high net-worth individuals and family offices after a relatively quiet period, according to Adam Struck, the founding partner of Struck Capital.
In an interview with Cryptonews, Struck emphasized that the approval of US Spot Bitcoin ETFs by the SEC has had a significant impact on the VC industry. Institutions like BlackRock and Fidelity have played a crucial role in driving this renewed interest.
Recognition of Crypto as an Asset Class
- Many limited partners (LPs) are now recognizing crypto as an asset class that should be part of a diversified portfolio.
- The SECโs approval of Spot ETFs has legitimized crypto in the eyes of LPs and changed sentiment towards the industry.
- This shift in sentiment has led to increased demand from LPs for exposure to crypto investments.
Struckโs VC fund manages $115 million and focuses on investing in crypto-native tech companies rather than cryptocurrencies themselves. Some notable companies in their portfolio include 1inch, Algorand, CoinFLEX, Liquify, and Shardeum.
Struck Capitalโs Quest for Improved User Experience and Security
Looking ahead, Struck Capital is actively seeking exceptional founders who have unique insights and are driven by the right motivations when building their ventures. They are particularly interested in companies that prioritize user experience and security.
Focus on Modular Blockchains
- Struck Capital is specifically interested in modular blockchains that specialize in specific functions rather than trying to cover all aspects.
- They have already invested in Eclipse Labs, a company in this sector that recently raised $50 million.
- Modular blockchains offer the flexibility to borrow different features from various blockchains and integrate them into a Layer-2 capacity, addressing the scalability, security, and decentralization trilemma.
Additionally, Struck Capital is looking for projects that leverage new ecosystem proposals to improve user interface and experience. They are interested in companies that use machine learning models and AI to enhance infrastructure security.
Enduring Impact of Spot Bitcoin ETFs on BTC Prices
Struck believes that Spot Bitcoin ETFs will continue to have a significant impact on Bitcoin prices in the long term due to fundamental principles of supply and demand.
Influence on BTC Prices
- The introduction of Bitcoin ETFs by large entities like Fidelity and BlackRock generates substantial buy pressure and increases the price of Bitcoin.
- These entities need to purchase thousands of Bitcoin to back up their ETFs, which drives demand and potentially impacts prices.
- Rumors about substantial Bitcoin purchases by entities like the Saudis or Emiratis could further contribute to price increases.
Hot Take: Crypto VC Space Gains Momentum with High Net-Worth Individuals ๐
The crypto VC space is experiencing a resurgence of interest as high net-worth individuals and family offices recognize the value of crypto as an asset class. The approval of Spot Bitcoin ETFs by the SEC has played a crucial role in changing sentiment towards crypto investments. Struck Capital, with its focus on investing in crypto-native tech companies, is well-positioned to capitalize on this renewed interest. Their emphasis on user experience and security, along with their interest in modular blockchains, demonstrates their commitment to innovative and sustainable projects. As Spot Bitcoin ETFs continue to influence BTC prices, the crypto VC space is poised for further growth and success.
Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension.