Is it another wave of “institutional FOMO” (Fear Of Missing Out) in cryptocurrency? After American billionaire Paul Tudor Jones’ endorsement of Bitcoin, hedge fund giants Stanley Druckenmiller and Daniel Loeb are backing crypto asset management firm Bitwise.
Bitwise Asset Management has completed a $70 million led by tech investor Elad Gil and crypto venture fund Electric Capital. The round includes Daniel Loeb’s Third Point LLC, hedge funder Stanley Druckenmiller, financier Henry Kravis, Bridgewater CEO David McCormick and Nadeem Meghji, a senior managing director at Blackstone.
With $1.2 billion in assets under management —a 20 times year-on-year increase, Bitwise offers index funds covering Bitcoin (BTC), Ether (ETH) and DeFi tokens. Bitwise plans to further strengthen its ties with the financial advisers, bolstering its client education resources and relationship management team.
Others who contributed to the funding round include Coinbase Ventures, ParaFi Capital, as well as tech and finance executives from Facebook, Google X, Spotify, Visa and Instacart.
After the funding round, Bitwise reaches a $500 million valuation.
DYdX Raises $65M Led by Paradigm
Decentralized derivatives exchange dYdX has raised $65 million in its Series C round led by Paradigm. Participating investors include CMS Holdings, CMT Digital, Electric Capital, HashKey Capital and StarkWare Industries.
DYdX just announced a $10 million Series B round in January this year, led by Three Arrows Capital and DeFiance Capital. In the latest round, dYdX said it will use the new capital to significantly improve liquidity during volatile trading periods.
Earlier backers of the protocol also include a16z, Bain Capital Ventures and Coinbase CEO Brian Armstrong.
In February this year, dYdX launched a new Layer-2 solution to make the platform less costly to use. Since the February upgrade, dYdX’s Layer-2 protocol has supported over $2.2 billion in volume from over 11,000 traders. “We’re doing about $40 to $50 million in volume every day on layer two” perpetual swaps, founder Antonio Juliano told CoinDesk, referring to the protocol upgrade.
DYdX is positioning itself as a decentralized hub for Ethereum-based crypto derivatives. Juliano said he plans to make dYdX ‘one of the biggest crypto exchanges’ in three to five years, taking on the likes of Binance, Huobi and FTX.
Uniswap is reportedly exploring tie-ups with large financial institutions such as PayPal, Robinhood, E*Trade, Stripe and Paxos. The largest decentralized exchange on Ethereum is said
Crypto exchange Binance CEO Changpeng Zhao (CZ) hints to step down as he is looking for a replacement. And Justin Sun, Tron blockchain’s founder, joins