Venture capital firm Sequoia Capital affirmed its bullishness on cryptocurrencies by rolling out a $600-million fund focused on digital tokens, Bloomberg reported.
Sequoia Partner Shaun Maguire believes the firm has adopted a long-term view on cryptocurrencies, which it expects to be a megatrend in the next 20 years as it is “the future of money.”
The fund will be among one of the three new sub-funds of the firm, with capital already secured from existing partners of the venture capital firm. Limited partners back the fund, pouring in 95% of eligible balances into the new structure.
Sequoia earlier announced a restructuring to give it more flexibility to invest in public companies and more leeway to work around regulations that impose a fund’s maximum investment in cryptocurrency at 20%.
Maguire said the firm could invest the cryptocurrency fund in under a year should a bear market persist, noting that lower startup valuations could be attractive according to its partners.
The cryptocurrency sector saw $21-billion worth of investments in 2021 BTC is down 3.83%, ETH down 2.93%, and XRP down 2.13%.