Big Dubai crypto fund dumps Bitcoin for $750M – to buy Cardano and Polkadot
FD7 Ventures, a Dubai-based crypto investment fund with $1 billion under management, has announced plans to sell $750 million worth of bitcoin holdings next month. Proceeds from the sale will be used to buy Cardano and Polkadot bei Bitcoin Future review, as the fund’s managing director believes ADA, DOT and ETH will be the foundation of Web 3.0.
Cardano and Polkadot get backing from major crypto fund
The crypto industry is ripe with news of large financial institutions and companies acquiring large amounts of bitcoin. From Jack Dorsey’s Square leading the way with its massive BTC purchases last year, to 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 buy Bitcoins.
However, a major cryptocurrency fund in Dubai has decided to go a different route and offload most of its bitcoin holdings. FD7, a global crypto investment fund with US$1 billion in assets under management (AUM), plans to sell US$750 million of its BTC holdings next month.
According to the company’s press release, the proceeds from the sale will be used to increase the company’s positions in Cardano (ADA) and Polkadot (DOT). The increase in DOT and ADA holdings will better meet the needs of FD7 investors, the company said in the release.
Fund’s managing director considers bitcoin “useless”
Prakash Chand, the managing director of FD7 Ventures, says the fund’s investors want to diversify their portfolios in the crypto space.
“Apart from the fact that Bitcoin was the first to hit the market and society has given it significance as a store of value, I think Bitcoin is actually pretty useless,” Chand said in the press release.
“Projects like Cardano, Polkadot and Ethereum are the foundation for the new internet and Web 3.0.”
And it’s not just portfolio diversification that has driven the fund to Cardano and Polkadot. According to the firm, both Cardano founder Charles Hoskinson and Polkadot founder Dr Gavin Wood are “two of the brightest minds” working in crypto.
Both, the company adds, are leading projects that it believes will have the potential for significant global impact. Chand comments that he believes Ethereum, Cardano, and Polkadot will be more valuable than Bitcoin within the next few years, which is why the company is trying to stay ahead of the market and expose its investors to the growing assets.