As the digital asset industry gains momentum once again, specialized crypto funds are emerging to target specific sectors within the blockchain ecosystem.
One such fund is the Bitcoin DeFi Venture Fund I, launched by Asymmetric Financial, with a fundraising target of $21 million. This fund is dedicated to investing in the nascent space of decentralized finance (DeFi) built on the Bitcoin blockchain. Dan Held, former director of growth at Kraken and a prominent figure in the Bitcoin community, will lead the fund as the general partner.
Decentralized finance, or DeFi, leverages blockchain technology, particularly the Bitcoin blockchain in this case, to facilitate direct transactions between market participants and retail investors. By utilizing self-executing smart contracts, DeFi platforms eliminate the need for intermediaries and traditional financial institutions. Common applications of DeFi include decentralized lending and borrowing protocols, enabling individuals to access capital without conventional credit assessment processes.
Held’s expertise and advocacy for DeFi within the Bitcoin ecosystem position him well to lead the fund’s investment strategy. Collaborating with Joe McCann, the CEO and CIO of Asymmetric Financial, Held aims to make “contrarian bets” in the evolving landscape of decentralized finance. His previous involvement with DeFi-focused initiatives, such as Taproot Wizards and Trust Machines, underscores his commitment to advancing Bitcoin’s role in the DeFi space.
I had boots on the ground and saw the traction of NFTs on Bitcoin and lending and borrowing on top of Bitcoin that could be built and were built,” Held said. “There’s a really important role unfilled in the Bitcoin ecosystem.”
Currently, only a few crypto venture capital firms invest in Bitcoin-centric startups, and even fewer venture into subsectors like DeFi, layer-2 (L2) scaling networks, Ordinals, and decentralized applications (dApps).
“Most crypto VCs don’t perceive bitcoin as a place to invest in,” Held said. Many Bitcoin-focused VCs overlook DeFi because they view it as speculative, while broader crypto VCs consider it a “dead boomer rock,” he added.
However, Held is convinced that both perspectives are mistaken. “There’s a new wave coming that I’ve seen coming for years. Now is the right time to do it; we’re at the beginning of the next cycle, and a lot of talent is coming onboard.