Bain Capital Ventures (BCV) Launches New Crypto Fund

Bain Capital Ventures has launched a cryptocurrency investment fund called BCV Crypto Fund I, L.P. according to a filing with the Securities and Exchange Commission (SEC) on September 8, 2021.

Bain Unveils Crypto Fund

Bain Capital Ventures, the VC firm of BainCapital, one of the largest multi-asset alternative investment companies in the world, has secured SEC approval for the rollout of its digital currency-focused investment fund.

Named BCV Crypto Fund I, L.P, the crypto fund is a first of its kind for the firm. Though the mode of operation of the new crypto fund is still undisclosed, the filing, however, shows it’s a pooled investment fund, with Bain Capital’s partners, Ajay Agarwal and Enrique Salem listed as executive officers. 

Established in 1984 by James Nhirny and Michael Krupka, Bain Capital Ventures invests in tech-focused seed to growth-stage startups. Bain Capital Ventures has made a total of 508 investments since its launch and it currently has $5.1 billion in assets under management (AUM).

Last May, Bain Capital Ventures announced that it has raised $1.3 billion it plans to invest in two funds. At the time, the firm made it clear that $950 million will be pumped into seed and Series A deals, while $350 million will take care of growth-stage opportunities. 

Bain Capital Ventures has invested in various cryptocurrency, decentralized finance, and blockchain-based projects in the past, including Digital Currency Group, Compound Finance, and BlockFi.

Crypto Adoption on the Rise

Despite the somewhat draconian cryptocurrency regulations in the United States, institutional investors are increasingly latching onto crypto. According to Statista, as of Q1, 2021, 43 percent of the world’s crypto funds are based in the U.S. 

As reported by BTCManager on August 5, 2021, JPMorgan, one of the largest lenders in the world, announced the launch of a private fund designed to give its wealthy clients exposure to bitcoin (BTC).

In the same vein, in late August 2021, Wells Fargo, the 16th-largest bank in the world, joined forces with New York Digital Investment Group (NYDIG) and FS Investments to launch a passively-managed bitcoin fund.

So far, financial regulators in the U.S. are yet to approve any cryptocurrency exchange-traded fund (ETF).