A $100m Crypto fund opens with the goal of going long

A $100m Crypto fund opens with the goal of going long

INTERNATIONAL – The crypto world might call it the Big Long.

A new $100 million investment firm, Darma Capital, is opening to investors who want to bet that digital assets such as Ether are poised for a 10-year bull run. Of course, Ether saw one of the largest boom-and-bust cycles in crypto, rising an astounding 17,775% in 2017 only to see 94% of its gains erased by the end of last year. Darma’s founders, however, are counting on Ether’s long-term integral role in the Ethereum blockchain to counter such mania.

“We want to acquire what we consider a new asset class,” Andrew Keys, a managing member in Darma, said in an interview.

Keys, one of the first employees of ConsenSys, a Brooklyn-based Ethereum application developer, compared the state of crypto today with the early days of the internet’s popularization, when investors backed Google or Amazon, which operate atop the web’s architecture. The cryptocurrency Ether is the equivalent of the web — it makes the Ethereum blockchain work — but unlike with the internet, investors can buy Ether directly, Keys said.

“We are 10 years long” on Ether, Keys said. His firm plans to create similar funds for Bitcoin and Filecoin in the future, he said.

While scandals, fraud and regulatory actions are still seemingly weekly events in crypto, there are signs of well known corporations adopting Ethereum for real world uses. In April, Ernst & Young released its version of privacy-enhancing technology onto the public Ethereum blockchain. That same month, Societe Generale SA issued […]