This USD 100M Fund Goes Long on Ether, Plans Bitcoin, Filecoin Funds

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Darma Capital, a USD 100 million investment firm, is already looking for investors that believe that Ether, the native token of the Ethereum platform, is poised for a 10-year bull run, Bloomberg reported, citing Andrew Keys, a managing member in Darma.

Source: iStock/Zbynek Pospisil

The firm also aims to create similar funds for Bitcoin and Filecoin, a decentralized storage network, in the unspecified future, according to the report.

Over the last few years, the strategy of the fund was to acquire as much Ether as possible and it sold it near the top of the market in early 2018 but acquired even larger quantities of the coin as prices fell, it said, adding that managing the price swings is a major focus of the fund. According to Keys, the fund secured as much as ETH 2,500 last year for every 1,000 the fund started with.

Keys is one of the first employees of ConsenSys, a Brooklyn-based Ethereum application developer, which is also Darma’s first corporate client and has invested some of its Ether with the fund for risk-management purposes.

Meanwhile, as reported in May, Grayscale, a U.S.-based cryptocurrency asset management firm, brought more good news for Ethereum investors as it announced that shares of its Grayscale Ethereum Trust (ETHE) were approved by the Financial Industry Regulatory Authority for a public trading on OTC Markets. “The secondary market really opens up the opportunity for any and all investors,” Michael Sonnenshein, managing director of New York-based Grayscale Investments, said back then.

Ether price chart: