Three analysts left their positions in the investment giant BlackRock, managing assets of $ 6.3 trillion, to found venture capital fund Eterna Capital with a capital of $ 20 million, which will invest in blockchain projects. This is reported by Financial News.
The company intends to attract institutional investors and will operate under the leadership of Andrea Bonaceto, who founded the HR platform HiredGrad. Bonaceto launched the fund in collaboration with Nassim Oliv, Asim Ahmad and Matthew Mvroshevichem, who previously worked for BlackRock.
Eterna Capital will invest in blockchain projects that develop solutions for the UN's Sustainable Development Goals, including hunger, drinking water and access to renewable energy.
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 claims that his experience at Blackrock made him believe that institutional investors are also interested in blockchain technology.
2017 was the year of Bitcoin and [initial coin offerings] (ICOs), but we’re convinced 2018 will be when blockchain and cryptos will rise as an asset class, and when institutional money moves into this market. No way they [large institutions] will risk the reputation risk by launching a $20-100 mln blockchain or crypto fund. This is why more people with an institutional track record are launching their own ventures.
Nevertheless, large investors avoid direct investments in such instruments because of the size of the market.