Hong Kong
C Capital – a company established by Hong Kong billionaire Adrian Cheng – reportedly intends to raise $500 million to invest in digital currencies, credit, and private equity over the next year and a half.
The firm thinks the cryptocurrency market has already bottomed, meaning that delving into it now is the perfect timing.
According to a September 21 coverage by Bloomberg, C Capital plans to introduce a $200 million blockchain fund and distribute approximately $300 million into private equity and private credit strategies in 2023.
Ben Cheng – Chief Executive Officer and President of the company – believes the crypto winter has started to loosen its grip, which means that the current environment is perfect for fresh investments to “yield best results.” Contrary to many entities that prefer to stay away from the digital asset market at the moment, Cheng said:
“When people are on defense, we’re on the offense.”
Established five years ago, C Capital is not a newbie in the cryptocurrency sector. Over the past several months, it has invested around $1 billion in digital assets and credits, while its hedge fund’s primary focus is on crypto trading. Cheng revealed that the firm rejected the participation of other firms and angel funds in it at a seed stage because those had limited benefits.
Throughout its existence, C Capital has invested in over 60 businesses, including the popular blockchain gaming company Animoca Brands.
The prolonged bear market in 2022 has vaporized much of the investors’ interest in cryptocurrencies, while most prominent institutions prefer to stay away from the asset class when prices are down.
Still, some expect this cycle to be over soon, which could propel a price expansion and possible profits for those that have entered the market at its low levels.
At the beginning of the month, Dan Morehead – Chief Executive Officer of Pantera Capital – opined that “bitcoin is on to the next leg of a rally.” However, he could not give a precise timeline of when the prices of most digital assets will head north again:
“We’ve been through three big bear market cycles. I actually think we hit the lows in June, and we are on to the next bull market. It might be rocky and might take a while, but I think we are on to the next leg of a rally.”
On the other hand, Mark Yusko – CEO of Morgan Creek Capital Management – thinks the next bull run will occur sometime in 2024, fuelled mainly by the BTC halving.
It is worth noting that the crypto market, more specifically Ether’s valuation, was expected to revive a bit after “The Merge,” which happened last week. Nonetheless, it turned into a “sell the news” event as ETH is down around 20% since the transition into PoS.