Major Dubai crypto fund to sell $750M worth of BTC to buy Cardano and Polkadot
FD7 Ventures, a Dubai-based crypto investment fund with $1 billion under management, has announced plans to sell off $750 million worth of their Bitcoin holdings in the next month. The proceeds from the sell-off will be used to purchase Cardano and Polkadot, as the fund’s managing director says he believes ADA, DOT, and ETH will be the foundation of Web 3.0.
Cardano and Polkadot get backing from a major crypto fund
The crypto industry has been ripe with news of major financial institutions and enterprises acquiring huge amounts of Bitcoin. From Jack Dorsey’s Square leading the pack with its massive BTC purchases last year and PayPal’s and Visa’s crypto payment functionality to MicroStrategy’s and Tesla’s billion-dollar acquisitions—there seems to be a corporate race to accumulate Bitcoin.
However, a major cryptocurrency fund in Dubai has decided to go a different route and sell-off most of its Bitcoin holdings. FD7, a global crypto investment fund with $1 billion in assets under management (AUM), announced that it plans on selling $750 million of its BTC holdings in the next month.
According to the company’s press release, the proceeds from the sell-off will be used to increase the company’s positions in Cardano (ADA) and Polkadot (DOT). The increase in DOT and ADA holdings will better serve the needs of FD7 investors, the company explained in the release.
The fund’s managing director deems Bitcoin “useless” as a store of value
Prakash Chand, the managing director at FD7 Ventures, said that the fund’s investors want to diversify their portfolios in the crypto space.
“Aside from the fact that Bitcoin was first to market and society has given it meaning as a store of value, I think Bitcoin is actually pretty useless,” he said in the company’s press release. “Projects such as Cardano, Polkadot, and Ethereum are the foundation of the new internet and Web 3.0.”
And it’s not just portfolio diversification that pushed the fund to Cardano and Polkadot. The company said that both the founder of Cardano, Charles Hoskinson, and the founder of Polkadot, Dr. Gavin Wood, are considered to be “two of the brightest minds” working in crypto. Both, the company further explained, lead projects it believes will have the potential for significant worldwide impact. Chand noted that he was convinced Ethereum, Cardano, and Polkadot will be more valuable than Bitcoin within the next few years, which is why the company was trying to front-run the market and expose their investors to the growing assets.