Fund for Bitcoin Seeking $100 Million to Profit from Market Chaos

Even though explosions and scandals are roiling the cryptocurrency sector, a consortium of investors has set out now to raise $100 million for a fund that is centered on Bitcoin.

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The investment instrument, known as The Bitcoin Opportunity Fund, caters to high-net-worth clients wishing to diversify into the biggest cryptocurrency. The fund, which is backed by six investors, notably managing directors James Lavish and David Foley, will focus on both public and private businesses related to bitcoin. According to the team, they are contributing "a large amount of their own net wealth" to the fund, according to Trade Algo.

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Its launch coincides with a protracted bear market in cryptocurrencies, a severe downturn in the tech industry, and more lately, the swift failure of three American banks. According to Cory Klippsten, one of the fund's partners and CEO of automatic Bitcoin saving plans provider Swan Bitcoin, the financial crisis only emphasizes the necessity for Bitcoin. Everyone requires some personal funds they can manage.

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The digital asset market was in turmoil even before Silicon Valley Bank, the crypto-friendly Signature Bank, and Silvergate Capital Corp. went under. These crises ranged from the collapse of the hedge fund Three Arrows Capital to the stunning crash of Sam Bankman-FTX. Fried's 

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Despite the fact that these scandals have "harmed" the business, Lavish, a former executive in charge of investment alternatives at Luther King Capital Management, claims that distressed investing has benefited greatly from them. The new fund has been specifically looking at purchasing debt held by publicly traded Bitcoin miners that has been selling for "pennies on the dollar," he claimed.

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According to Foley, some private businesses are experiencing a 60% decline in value as they seek out further funding. Considering the current economic crisis, he added, there are attractive chances to explore. "That's a significant markdown from where respected venture firms were pricing these companies a year and a half ago," he said.   

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At the investment company Equity Management Associates, Foley serves as managing partner. Larry Lepard, the organization's founder, as well as Greg Foss, an executive director at the Canadian energy company Validus Power Corp., and Mark Moss, the creator of the media company Market Disruptors, are partners in the new Bitcoin Opportunity fund.

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Bitcoin surged earlier in the week to beyond $26,000 for the first price since June, but as of Thursday, it has dropped to $24,939 from that level. From an all-time high of approximately $70,000 in November 2021, it has still dropped by around 62%.