C R Y P T O — F U T U R E
Crypto Fund Bets On Ether
10-year-long bull run imminent
The DARMA Capital investment company relies on ether and is now launching a fund based on the Blockchain Ethereum — the digital coin is ready for a long-standing bull run.
DARMA Capital: Acceptance Of Ethereum On The Rise
DARMA Capital, an investment company with $100 million of capital under management, recently announced its long-term investment in ether. Experts expect the value of ether to rise sharply over the next 10 years. In particular, the underlying technology, Ethereum, is likely to be the driving force. In the real world, it is increasingly being used.
In April, for example, the business consultants Ernst & Young published a beta version of their new tool for testing Smart Contracts that run via Ethereum. In the same month, Société Générale also issued a covered bond worth USD 162 million based on the blockchain Ethereum.
“The acceptance of Ethereum is steadily increasing, which has a direct impact on the demand for ETH Zurich. All major cloud vendors, including Amazon, Google, and Microsoft, offer Ethereum as a service,” said DARMA.
Just A Test Balloon?
Société Générale sold the bond to itself, external buyers were not involved in the deal. The financial institution, therefore, used the issue of a security token as a pilot project, possibly to sound out interest in the market or test its implementation.
“This operation is the first pilot project developed by Societe Generale and Societe Generale FORGE, one of the 60 internal start-ups launched through the Internal Startup Call, the Group’s intrapreneurial program,” commented the bank. Among other things, the aim is to find a more efficient way of issuing bonds and reducing costs. At the same time, the test aims to improve product scalability, shorten time to market and speed securities settlement.
SocGen No Stranger To The Crypto Business
This is not the first time that the French bank has become active in the field of cryptocurrencies and block chains. In 2017, Société Générale was part of the founding team of the trade finance platform we.trade. One year later, the finance house then joined Komgo SA, a blockchain-based platform for commodity trading.
Is Ether On The Verge Of A Bull Run?
Therefore, the investment company is now looking for institutional investors who are also convinced that Ether is ready for a ten-year bull run, Bloomberg reported.
“We will be working with Ether for 10 years,” said Andrew Keys, who recently joined DARMA Capital as Managing Partner.
In recent years, the company’s strategy has been to acquire as much ether as possible. In early 2018, it then sold the coins close to their highs, Keys reported. Subsequently, as prices fell again, larger volumes were acquired again. The management of price fluctuations is a focus of the fund, said the co-founder of ConsenSys, a company that develops apps based on Ethereum.
Keys now wants to close an existing gap in the market and offer institutional investors, in particular, a solution.
“We want to attract clients to a new asset class,” he said.
“My core competency lies in finance and my secondary competence in technology. There is a gap in the market, and that is a simple solution, and I think a necessary missing piece in the market,” NewsBTC quoted the new Managing Partner.
In an interview with Bloomberg, Keys also compared today’s crypto industry to the Internet of the 1990s. Ether is the equivalent of the early Internet. In addition to the Ether funds, similar CFTC-registered funds for Bitcoin & Co. are to be established in the future, as DARMA Capital plans.