Blockchain assets hedge fund Polychain Capital that was initiated by ex-Coinbase employee Olaf Carlson-Wee, announced that it has raised $10 million funds from Union Square Ventures (USV), Andreessen Horowitz (A16z) and Boost VC, among others.
The San Francisco-based startup was launched in September with $5 million from 30 investors. Polychain Capital aims to invest the funds in ‘protocol-tokens’ or alternative assets, which has both underlying and a traceable asset that manages access to digital ledger or application, the coindesk reported.
“There will be many types of assets codified into the blockchain, and they are all not just going to be on the bitcoin blockchain — it’s going to be a number of different assets here. And the best way to invest in that is a diversified portfolio,” Carlson-Wee told to Forbes.
Carlson-Wee also mentioned that hedge funds like Polychain Capital are shaping up to be a part investment and part token used for participating in a network. The ‘protocol-tokens’ has a value and can be simply traded as trading a stock or other investment.
A16z and USV have backed startups previously including OpenBazaar, a decentralized e-commerce marketplace and Mediachain, a metadata protocol for content sharing. The CoinDesk data said that in 2016, nearly $200m has been raised in initial coin offerings (ICOs) or public token sales.
