Founder and CEO Alexander Ivanov will be a key advisor and principal for the Basics Fund, a diversified portfolio of crypto assets, alongside professionals in the venture capital industry.
Over the course of 2017, bitcoin has regularly featured in the headlines of the mainstream media thanks to its meteoric rise in value. Bitcoin’s startling growth has outpaced all conventional asset classes — though ICO-led crypto assets have outperformed even bitcoin over the past year. The first futures products and institutional interest have helped legitimise what was once seen as a niche or geeks’ plaything — or worse, a tool for criminals.
Bitcoin’s prominence has brought with it venture capital and hedge fund investment, with established fund managers recognising not only its stellar growth but the long-term potential that this suite of technologies holds to disrupt traditional financial and business practices and models. Blockchain offers advantages across a wide range of applications and sectors, from finance and real estate to medicine and data storage.
Now, the Waves platform will play a major role in creating a new blockchain venture product. The Basics Fund is dedicated to investment in blockchain infrastructure and combines the best of venture funds and hedge funds — investing in a diversified portfolio of promising start-up projects in the blockchain space. Assets and activity will include established crypto-assets and pre-sale ICO tokens, as well as arbitrage and event-oriented trading.
Strategy and expertise
The Fund will draw on the expertise of both experienced hedge fund managers and key members of the Waves team, including the platform’s CEO, Alexander Ivanov. Investments will be made in unique blockchain solutions with a real-world application, and that are underpinned by strong technology and teams with an established track record. Ten-fold growth over the course of 2–3 years is expected, vastly outpacing all traditional markets.
“As the most enterprise-ready blockchain platform in the world, it is important that Waves is at the forefront of every aspect of the emerging crypto economy,” comments Alexander Ivanov. “That means technological excellence, but it also means shaping the regulatory landscape and actively furthering use cases for every sector. In this instance, we’re very proud to be partnering with experts from the asset management industry and launching a new blockchain Fund for mainstream investors, which will pioneer best practices and showcase the strength of blockchain technology to a new market.”
In addition to Alexander Ivanov, who is now one of the best-known names in the blockchain space, the Fund will be managed by Maxim Kuzin, a highly experienced asset manager. The project will take the form of a Cayman Islands GP/LP Venture Fund.
Whilst the Basics Fund has similarities to classical venture capital funds, the emphasis on blockchain solutions means there are a number of key differences. Token transactions are fast and low-cost, compared to those in VC funds, which can take months to complete and be subject to high fees. Additionally, exits in blockchain projects may be secured after as little as two months, with tokens benefiting from high liquidity — in stark contrast to the illiquidity of most VC funds.
An initial $10 million in investment is sought for January 2018, with a total of $30 million by April.