10T fund has invested more than $650 million into crypto companies
10T fund launched by a veteran
investor of the macro trading field, Dan Tapiero, invests in cryptocurrency
companies to give traditional investors some exposure to equity in crypto firms
this time invested more than $650 million.
In 2019 10T fund was launched with a valuation above $500 million. The fund has invested in a wide range of crypto firms like Kraken, Huobi, eToro, Ledger, and Figure based on demand for types of funds. The first fund it launched was 10T. The second fund was the 10T DAE Expansion Fund for which around 80% of its capital was used. Both 10T and 10T DAE Expansion funds including co-investment vehicles have distributed $ 650 million to cryptocurrency companies.
According to Tapiero investment will not provide the 100x return as per the expectation of venture capital investors. It is a less risky way for pension funds and endowments to get exposure to crypto’s upside. Tapiero said "Pension funds and large investors are more confident in investing in such companies, especially since many cryptocurrency firms have revenues more than $ 100 million. This is a big business that will not disappear suddenly,"
Tapiero also highlights that the investments that are not done at an early stage of the company's development or the purchase of promising tokens are less profitable but are much less risky. Hence institutional investors will be more benefited. As Tapiero said "Within six weeks of our valuation, Kraken had gone up 3 to 4 times," "eToro went up around 5 to 6 times”.
The investment firm Tapiero manages around $750 million total amount fund. As per Tapiero backers of the fund include the Municipal Employees’ Retirement System of Michigan and billionaire investor Alan Howard.
Around 70 companies in the crypto market increase a valuation above $1 billion according to Tapiero's count. Last year the count was around 20. Newbie unicorns including NFT platform Opensea and trading services firm FalconX. As per Tapiero within five years the Bitcoin rate will grow 20-30 times.
CBW - External Analyst