C Capital – a company founded by Hong Kong billionaire Adrian Cheng – reportedly aims to raise $500 million to invest in digital currencies, loans and private equity over the next year and a half.
The firm thinks that the cryptocurrency market has already bottomed out, which means that now is the perfect time to enter.
‘When people are on defense, we are on attack’
According to data from September 21 coverage from Bloomberg, C Capital plans to launch a $200 million blockchain fund and distribute approximately $300 million to private equity and private credit strategies in 2023.
Ben Cheng – the company’s CEO and president – believes that the crypto winter has begun to ease, which means that the current environment is perfect for new investments to “bring the best results”. Unlike many entities that currently prefer to stay out of the digital asset market, Cheng said:
“When people are on defense, we are on offense.”
Founded five years ago, C Capital is no newcomer to the cryptocurrency sector. In the past few months, he has invested around $1 billion in digital assets and loans, while his hedge fund’s primary focus is on crypto trading. Cheng revealed that the firm rejected other firms and angel funds from participating in it at the initial stage because they had limited benefits.
During its existence, C Capital has invested in more than 60 companies, including the popular blockchain gaming company Animoca Brands.
Is it time for the running of the bulls?
The prolonged bear market in 2022 has evaporated much of investor interest in cryptocurrencies, with most prominent institutions preferring to stay away from the asset class when prices fall.
Still, some expect this cycle to end soon, which could trigger price expansion and possible profits for those who entered the market at low levels.
At the beginning of the month, Dan Morehead, CEO of Pantera Capital, opined that “bitcoin is on the next rally.” However, he could not give a precise time frame for when the prices of most digital assets will head north again:
“We’ve been through three major bear market cycles. I think we hit lows in June and are in the next bull market. It might be rocky and it might take a while, but I think we’re on the next leg of the rally.”
On the other hand, Mark Yusko – CEO of Morgan Creek Capital Management – thinks the next exchange will happen sometime in 2024, fueled mainly by the BTC halving.
It is worth noting that the crypto market, more precisely the valuation of Ether, was expected to revive a bit after “The Merge”, which happened last week. However, it turned into a “sell the news” event as ETH dropped about 20% since the PoS move.
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