VCs remain the main source through which institutional investors access cryptocurrencies.
VC firm Re7 Capital turned to crypto infrastructure and advisory firm web3 Republic Crypto to launch a $100 million fund for liquid tokens. The fund, dubbed the RxR Opportunities Fund, is one of the first initiatives of the 2022 strategic joint venture between the two companies. According The blockThe fund will allow eligible investors to have access to a limited number of carefully selected crypto tokens, with a focus on those with mid-market capitalizations.
In a statement about the fund, Re7 Capital founder Evgeny Gokhberg admits that the fund will target smaller crypto names. However, he also insists that it won’t involve anything speculative like meme coins. And while Gokhberg confirms that the fund is already seeing commitments from all sides, he did not disclose the exact amount that has been made so far.
RxR Opportunities Fund has a one year lock up with liquidity after which it can be unlocked every quarter. According to Gokhberg, about 15% would focus on private deals, such as over-the-counter (OTC) transactions.
The new Re7 Capital fund represents a third option for its clients. The Cayman Islands-based company first launched a market-neutral DeFi performance fund in 2021. In February, it also launched an Ether-focused fund. For this reason, the RxR fund adds a new option for its clients.
Re7 Capital signals the growth of venture capital
Meanwhile, the impressive growth of the venture capital sector of late cannot be overstated. Historically, VCs remain the main source through which institutional investors access cryptocurrencies, albeit on a large scale. But recently, it seems that there are more liquid opportunities for them to participate in the market. Investors now stake, take advantage of yield opportunities, and have access to liquid tokens just like before. The last part is exactly what Re7 and Republic hope to achieve with their new fund.
Re7 partners with deep knowledge and experience in successfully running a crypto hedge fund.
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Mayowa is a crypto enthusiast/writer whose conversational nature is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from cryptocurrency, however, Mayowa’s imagined distractions include soccer or discussions of world politics.
