INSTITUTIONS MAKING THE CASE FOR BLOCKCHAIN

Blockchain Coinvestors Newsletter

Vol. 3, No. 19, September 2021

INSTITUTIONS MAKING THE CASE FOR BLOCKCHAIN

This weekend we have spent hours reading through the rationales that the world's leading institutional investors are using to explain their decisions to invest in blockchain and crypto. It is an exercise we have done before, several times over, but what has changed is the forcefulness of their arguments and the breadth of different types of investors arguing the case. 

Next week, we will summarize our findings in our webinar "Institutional Investors - Making the Case for Blockchain". Please join us, or listen to the recording once posted at www.fifthera.com/webinars.

Some highlights:

  1. Paul Tudor Jones - It's all about the great monetary inflation and the reality that governments can't stop instructing their central banks to print money, reducing its value and increasing the value of all other scarce assets

  2. Bill Miller - From a purely trader perspective, there is an apparent arbitrage between Bitcoin (Digital Gold) and gold itself

  3. Cathy Miller - Exponential technologies are driving value creation and digital monies are part of the fintech revolution being powered by them

  4. Fidelity Investments - In a world in which most 'alternative investments' are correlated with the public equities and fixed income products that they trade, Bitcoin appears to be a real alternative investment.

  5. CFA and Bitwise - Financial advisors and their clients increasingly want access and adding it to a conventional portfolio appears to create substantial potential upside

  6. Michael Saylor - For many corporate treasuries, this is the smartest investment they can put on their balance sheets

  7. Governments and Central Bankers - Watch what we do, not what we say

  8. Various thought leaders - Digital asset infrastructure is rapidly building out on a global scale

  9. Decentralized Finance (DeFi) - Trading volumes are ramping up, although there are issues

  10. Non fungible tokens (NFTs) - From nowhere to everywhere - users and trading ramping up

After nine years investing into blockchain, and many more investing in Internet and Fintech we are excited to see so many of the world's investment thought leaders now arguing the case too.

Thank you for reading.

Alison Davis
Matthew C. Le Merle

ABOUT BLOCKCHAIN COINVESTORS

Launched in 2014, our goal is to provide broad coverage of the emerging unicorns and fastest growth blockchain companies and crypto projects. The strategy is now in its 8th year and has to date invested in more than 25 pure play blockchain venture funds in the Americas, Asia and Europe; and in a combined portfolio of 300+ blockchain and crypto projects including 30+ blockchain unicorns. Our funds rank in the top decile amongst all funds in their respective categories on both Pitchbook and Preqin. Headquartered in San Francisco with a presence in Grand Cayman, London, New York, Zug and Zurich, the alternative investment management firm was co-founded by Alison Davis and Matthew Le Merle. 

FUND PERFORMANCE

Blockchain Coinvestors Funds are continuing to generate strong returns. To date, over 80% of the funds we are invested in are performing as top quartile funds against the Cambridge Associates benchmark. This remarkable performance results from powerful tailwinds driving the world towards a future in which digital monies and digital assets are ubiquitous and the businesses and projects providing blockchain and crypto products, services, and infrastructure benefit disproportionately.

BLOCKCHAIN COINVESTORS FUNDS

Blockchain Coinvestors’ goals are to provide broad coverage of the emerging unicorns and fastest growth blockchain companies and to capture superior returns from investing in the leading blockchain venture partnerships:

  • Fund III is open only to investors who meet the Qualified Purchaser definition with a minimum subscription of $250,000.

    • A “qualified purchaser” is an individual or a family-owned business that owns $5 million or more in investments. The term “investments” shouldn't include a primary residence or any property used for business.

  • Fund III Parallel is open to investors who meet the Qualified Client definition with a minimum subscription level of $250,000 at the discretion of the Manager. Please contact ir@blockchaincoinvestors.com if the minimum is of concern.

    • Currently, an individual or entity is a qualified client if he, she, or it: (i) has a net worth of $2,200,000 prior to investment in the fund (excluding the value of his or her primary residence).

While the two funds are substantially the same, there may be some funds and investments that are only available in the Qualified Purchaser vehicle. Blockchain Coinvestors funds can take investments via IRAs. We support several providers, including AlgoIRA, Kingdom Trust, Millennium Trust Company and Pacific Premier Trust Company (Pensco).

Please visit the Blockchain Coinvestors website to learn more about our offerings. You can also reach our Investor Relations team directly at ir@blockchaincoinvestors.com.

BLOCKCHAIN COINVESTORS SWISS

We are excited to announce that Blockchain Coinvestors Funds are now available through Swiss certificates for those of our non-US investors who prefer this approach. The underlying fund is the same, however, our Zurich based team at Blockchain Coinvestors Swiss, who will introduce in future weeks, can provide detailed information regarding this investment option. Email us at mlemerle@fifthera.com to learn more.

LINQTO
'Private Investing Made Simple'

While our funds are only available to Accredited Investors who are also Qualified Clients we believe in the democratization of investment access to all investors and look forward to that day. In the interim, we have partnered with Linqto which is an easy to use Mobile and Web app that makes it exceptionally easy to invest into attractive opportunities. The provide access to Accredited not Qualified Client investors as well as much lower minimums. Go to Linqto.com or download the app from your App store to use this approach.

BLOCKCHAIN COINVESTORS ANGELLIST SYNDICATE

Continuing the theme of the democratization of investing, we have a rapidly growing Blockchain Coinvestors syndicate on AngelList providing access to selected coinvestments. Please join us and our partner Lou Kerner on AngelList.

Click here to receive the insightful weekly crypto newsletter and webinar invitations from our Blockchain Coinvestors partner Lou Kerner.

REGISTER NOW FOR UPCOMING WEBINARS AND CALLS

Our investment team hosts bi-monthly webinars and calls to help educate our community about the Fifth Era, fintech, blockchain and crypto. We discuss important trends, tailwinds and investment themes including what we have learned and how we are using our knowledge to inform our own investment thesis and actions. Below is a list of upcoming webinars for which you can register by clicking the links:

Options for Investing in Blockchain & Crypto

- September 20th, 7:00am PST
- September 20th, 12:00pm PST

Institutional Investors - Making the Case for Blockchain

- September 27th, 7:00am PST

Meet the Blockchain VCs

- October 4th, 7:00am PST
- October 4th, 12:00pm PST

Options for Investing in Blockchain & Crypto

- October 18th, 7:00am PST
- October 18th, 12:00pm PST


Recordings of past webinars and calls can be found at www.fifthera.com/webinars.

UPCOMING EVENTS

Linqto's Global Investor Conference - September 21st
Join Matthew Le Merle and James Zhang at Linqto's Global Investor Conference for their panel "NFTs & The Gaming Economy - How Real Is This?" to learn more about how NFTs can expand the monetization of gaming.

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