In the ever-evolving world of digital assets, crypto funds are honing in on specific sectors to capitalize on emerging opportunities. One such fund, Asymmetric Financial’s Bitcoin DeFi Venture Fund I, is dedicated to investing in the nascent Bitcoin DeFi space. Led by former Kraken growth director and long-time Bitcoiner Dan Held, the fund aims to raise $21 million to support innovative projects.
Decentralized finance (DeFi) leverages blockchain technology to facilitate direct transactions between market players and retail investors, eliminating the need for intermediaries. DeFi applications range from decentralized lending and borrowing platforms to sophisticated financial instruments.
Held, known for his advocacy of DeFi in the Bitcoin ecosystem, believes that Bitcoin’s blockchain has immense potential as a DeFi hub. He sees opportunities in layer-2 (L2) scaling networks, NFT-like Ordinals, and decentralized applications (dApps) built on Bitcoin.
“There’s a huge untapped potential in the Bitcoin ecosystem,” Held emphasizes. “By building on the most popular chain in terms of users, volume, and liquidity, projects can tap into a vast and engaged audience.”
Despite the recent surge in Bitcoin NFT trading volume, the Bitcoin NFT ecosystem is still in its infancy. However, Held believes it’s an area worth watching, as it could unlock new avenues for growth and innovation.
Held is not alone in his bullish outlook for Bitcoin DeFi. Market players anticipate a surge of large funding rounds for L2 chains scaling Bitcoin, indicating growing interest in this sector.
However, Held acknowledges the challenges of building on Bitcoin due to its early-stage L2 infrastructure and limited developer focus. Nevertheless, he believes that the expressiveness and security of Bitcoin’s blockchain make it an attractive platform for L2 development.
The fund’s investors include ultra-high net worth individuals and funds of funds. It will primarily invest in tokens but will also consider equity deals. Held aims to leverage his expertise as a Bitcoin marketer and operator to assist projects with brand positioning, customer acquisition, and market expansion.
Held predicts a “Bitcoin DeFi renaissance” in 2025 or sooner, driven by the development of robust infrastructure. He believes that Bitcoin’s dominance in the crypto market presents an unparalleled opportunity for DeFi growth and innovation.