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What Makes Three Former BlackRock Analysts To Create Blockchain Venture Fund?

Three former BlackRock analysts have joined together to create a Blockchain venture Fund. They have resigned their positions from the $6.3 trillion global investment giant only to establish $20 million Eterna Capital. This fund would mainly focus on projects based on blockchain technology. It is quite clear that these analysts favor the technology and not necessarily the cryptocurrency that relies on the blockchain platform. The new age technology is catching up the attraction of several people for one or the other thing. There is also a sense of belief that if they miss the opportunity now, then it would be tough to find another in the next immediate future.

Institutional Investors

The venture capital fund’s primary objective is to attract more institutional investors, cointelegraph reported. Andrew Bonaceto, who was responsible for online recruitment platform of HireGrad in 2014, would manage the operation of the fund. Bonaceto was also responsible for launching the fund last month in an alliance with Mattia Mrvosevic, Asim Ahmad, and Nassim Olive, who were all working in BlackRock firm. There is a need to focus on blockchain technology to find newer solutions with an objective of reducing costs.

Eterna Capital disclosed that its plan is to invest in blockchain solutions and that the target area is United Nations Sustainable Development Goals. This included affordable, clean energy, clean water, poverty, and hunger around the world. That is a clear indication that they would focus more on handling social causes. This will not be surprising since Unicef too indicated its option to use cryptocurrency route to raise funds to manage refugees.  Similarly, there are others trying to get funds from the emerging digital currency market to fund their projects.

Focus On Underbanked Regions

The company has made it clear about its aim. Bonaceto added that “One example is the disintermediation of banks in under-banked third-world countries, so people don’t need banks to get a loan, as the money can be held on the blockchain. Or selling solar power between neighbors, rather than relying on an energy firm, is another example of how blockchain can be used for social impact.”

Olive stated that there is tremendous interest among institutional investors in the blockchain. This is based on his experience in BlackRock firm when he was able to interact with insurance companies. However, he pointed out that big investors are not convinced about investing in such vehicles. That is because of the market size. Also, regulators are tightening their noose on cryptocurrency.

Blockchain And Cryptos

Olive pointed out that the year 2017 belonged to bitcoin and initial coin offerings (ICOs). As far as the current year is concerned, it will be blockchain and cryptos that would rise as a class of asset. He is also confident that institutional money will come into this market. The current year has witnessed most of the crypto coins price plunging after peaking to hit their lifetime high in December.

Olive is also categorical that big institutional investors will not like to risk their reputation for launching a small denomination of blockchain or cryptofund. This is one of the main reasons that people with an institutional track record are ready to launch their own ventures.

About the author


Fred Krueger

Fred is a successful entrepreneur and investor. His passion to share his knowledge and to analyse the highly unregulated cryptocurrency market brought him here. His experience gives him a strategic edge amongst others.