With the digital asset industry gaining momentum once again, certain crypto funds are honing in on specific sectors for investment.
Crypto fund Asymmetric Financial is launching its Bitcoin DeFi Venture Fund I, focusing on investing in the emerging blockchain space with a target raise of $21 million. Spearheaded by general partner Dan Held, a long-time Bitcoin advocate and former growth director at Kraken, the fund aims to explore decentralized finance (DeFi) using blockchain technology, particularly Bitcoin, to facilitate direct transactions between market players and retail investors through self-executing contracts.
Held, along with CEO and CIO Joe McCann, aims to make “contrarian bets” in the industry. He has been a strong advocate for DeFi in the Bitcoin ecosystem for years and has been involved in various Bitcoin-related projects like Taproot Wizards and Trust Machines.
Despite limited investments in Bitcoin-centric startups by crypto venture capital firms, Held believes there is untapped potential in subsectors like DeFi, layer-2 scaling networks, and decentralized applications (dApps).
He emphasizes the opportunities in layer-2 blockchains and meta-protocols, suggesting that Bitcoin’s blockchain has vast potential as an ecosystem waiting to be unlocked for DeFi and collateral purposes.
According to Held, building on Bitcoin is a strategic move due to its large user base, liquidity, and market capitalization, making it a prime choice for future developments in DeFi.
While the Bitcoin NFT ecosystem is still evolving, Held notes a significant NFT trading volume on Bitcoin compared to Ethereum, hinting at the potential growth in this area.
The fund has attracted interest from high net worth individuals and funds, with plans to invest primarily in tokens while also considering equity options. Held aims to leverage his expertise in Bitcoin marketing and operations to assist projects with brand positioning and customer acquisition.
Looking ahead, Held predicts a “DeFi summer” on Bitcoin in 2025, or even sooner, envisioning a renaissance in Bitcoin DeFi as developers ramp up infrastructure development and adoption.
“Bitcoin presents the largest opportunity in crypto, surpassing all other assets combined,” Held concluded. “The unlocking of this asset for use in DeFi represents a monumental opportunity.”
