Bitcoin winner riding crypto wave aims to raise $100mn

Bloomberg

Jehan Chu says he’s got an early-mover advantage that will help his cryptocurrency fund stand out from the crowd.
The Hong Kong-based former art adviser started investing in bitcoin in 2013, when the digital asset saw its first major rally. Since then, prices have quadrupled, enabling Chu to quit his job, start a venture capital firm investing in blockchain technologies last year—and now, launch a cryptocurrency fund that’s seeking to raise $100 million. Part of that money is already in the bank and Chu has started investing.
His Kenetic Capital is among a slew of firms that are lining up at the new frontier after soaring prices and proliferation of initial coin offerings—sold by corporates to raise money—boosted demand for digital assets. Chu, whose fund is advised by ethereum co-founder Vitalik Buterin, says he isn’t interested in speculation, but rather in tokens sold by companies with strong fundamentals and long-term potential.
“When we make a call for what we think is a good investment, it’s not because we think it’s a speculative play,” Chu said in an interview in Hong Kong.
“It’s because we’re looking at the fundamentals based on years of experience.”
While the largest cryptocurrencies have all seen eye-popping rallies this year, it’s also a volatile market, prone to hacking and regulatory changes. One of the most salient issues now, for instance, is whether ICO tokens— which CoinDesk data show have raised $1.8 billion for startups so far—will be subject to securities regulations.
And bigger swings may be on the horizon as the cryptocurrency—which already split into two in August amid infighting over the underlying technology—may see another bifurcation soon.