OP Crypto, a cryptocurrency venture capital firm founded by former Huobi executive David Gan, is launching a new fund to support emerging fund managers focused on early-stage crypto investments.
Dubbed “OP Funds of Funds I,” the fund has secured $50 million in commitments from major companies such as FTX’s investment arm LedgerPrime and FJ Labs.
OP FoF I will target a hard cap of $100 million, and the founders plan to close the fund by the end of Q3, OP Crypto COO Lucas He told Cointelegraph.
The fund will work on identifying and supporting crypto fund managers with unique vertical expertise in areas such as infrastructure, decentralized finance, non-fungible tokens, the metaverse, gaming, and others.
Although the fund has a “differentiated focus” on the Asia-Pacific region, it will continue to invest on a global scale and seek exposure to fund managers in regions such as Latin America, Africa, India, Southeast Asia and other regions.he pointed.
FoF investors will have access to the deal flow of all vehicle managers and will have the opportunity to double their stake in specific projects through co-investment opportunities.
OP FoF I is the second fund to invest in emerging cryptocurrency fund managers from OP Crypto. In June 2021, the company launched its $50 million OP Ventures Fund I, targeting seed and pre-seed projects in the Web 3.0 space. The fund was backed by leading companies and institutional investors in the industry including Mike Novogratz’s Galaxy Digital, venture capital firm Digital Currency Group, Bill Ackman and Alan Howard.
“OP is synonymous with open, operational and opportunistic,” he said, adding that those are the “traits by which the fund is governed.”. The executive went on to say that despite the current market downturn, there are plenty of investors looking for exposure to cryptocurrencies, stating:
“To our surprise, there’s actually a lot of demand because people don’t know exactly where it’s best to park capital in the midst of the current bear market.”
He will also act as the head of research for OP Crypto, and will be the general partner of OP FoF I. He is a veteran in the cryptocurrency space since 2013 and previously held investment and FoF positions at Huobi Capital and State Street. OP Crypto founder Gan will take on the role of chairman and advisor to the fund.
Gan and He led the FoF strategy at Huobi and deployed capital on behalf of Huobi and were initial investors in Multicoin Capital, Dragonfly Capital and 1kx. “All of these investments were made in early 2018, when all of those funds had less than $50 million in assets under management,” He stated, adding that these funds finally hit a milestone of over $1 billion AUM three years. after.
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.
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.