Cryptocurrency-focused investment firm M31 Capital has launched a new investment fund dedicated to Web3 companies, further underlining the industry’s shift towards decentralized internet projects.
The M31 Capital Web3 Opportunity Fund will invest up to $100 million in token projects and private equity opportunities within Web3, the firm announced Tuesday. Initially, the fund will invest in projects that build decentralized Internet infrastructure and applications. Presumably, the new investment vehicle will be a “liquid hedge fund,” a structure that gives investors liquidity after only a 12-month lock-up period.
M31 clarified that it has already secured $50 million in investor commitments and will raise another $50 million before capping the fund at $100 million.
Despite the current cryptocurrency bear market, In 2022, investment funds dedicated to Web3 projects have proliferated, a clear sign that investors see value in the midst of turmoil. As Cointelegraph Research reported, Web3 has dominated venture capital interest this year. In the second quarter alone, Web3 projects accounted for roughly 42% of all individual venture capital deals within the blockchain space.
Cryptocurrency markets have shown a high degree of correlation with traditional equities for much of 2022, leading some investors to speculate that prices have deviated significantly from their fundamentals.. However, a high correlation suggests there could be more short-term pain for the crypto sector as central banks around the world try to curb inflation.
Nathan Montone, an early Bitcoin (BTC) investor who founded M31 Capital in 2016, said that the current cryptocurrency market cycle is the first time in ten years that “the price has trended lower while the fundamentals and Revenue growth is hitting record highs almost every day.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.