Peter Thiel’s Founders Fund Invests $200 Million in Bitcoin & Ethereum

• Founders Fund made a re-entry into Bitcoin last summer 2023 when the BTC price was under $30,000.
• These purchases suggest heightened institutional interest in Bitcoin once again. The spot Bitcoin ETF launch can fuel this interest further.

Founders Fund, the Peter Thiel-backed venture capital platform, has once again started making fresh investments into Bitcoin and Ethereum. This clearly suggests a growing appetite among institutional players for the digital asset class.

Citing sources familiar with the matter, Reuters reported that the Founders Fund invested a total of $200 million in acquiring Bitcoin and Ethereum, in mid-2023. As per the sources, the fund has made equal investments in both cryptocurrencies.

During the previous summer, Founder’s Fund initiated its acquisition of Bitcoin when its price was below $30,000, gradually adding more bitcoin and ether to its portfolio over the subsequent months, according to sources.

Being one of the earliest institutional players in the crypto sphere, the Founders Fund initiated significant Bitcoin purchases as early as 2014. However, it subsequently liquidated its holdings before the 2022 crypto market crash, thereby taking approximately $1.8 billion in profits, reported Reuters.

Comeback After the 2022 Crypto Winter

This undisclosed maneuver by the VC firm highlights a resurgence in institutional interest in token investments, which had waned following the 2022 market downturn.

Last year, Bitcoin and the broader crypto market registered a solid rebound after the brutal crypto winter of 2022, when the BTC price plummeted to $15,000. The year 2022 also witnessed major events like the FTX exchange collapse as well as the fall of crypto lenders  – Genesis, Global, and others. This led to strong regulatory scrutiny for the entire crypto industry.

Despite these challenges, both Bitcoin and Ether have exhibited gradual recoveries over the past year, with BTC recently surpassing the $50,000 mark for the first time in over two years. However, it still remains below its peak of $69,000 in November 2021.

Tech Billionaire Peter Thiel Embraces Bitcoin

Peter Thiel, renowned co-founder of PayPal and Palantir, has openly lauded Bitcoin for its potential as a store of value akin to gold and a hedge against central banks’ monetary policies. Bitcoin, operating on blockchain technology and existing independently of central bank oversight, aligns with Thiel’s libertarian ideals and his passion for technology innovation.

Thiel’s endorsement of the cryptocurrency reflects his broader interests in small government and technological advancement. His venture capital firm, Founders Fund, recognized for its early investments in pioneering companies like SpaceX and Meta, now manages assets exceeding $12 billion. Notably, the firm expanded its scope into cryptocurrency investment, appointing Joey Krug as a partner in April 2023 to spearhead its ventures in the crypto space.

Interestingly, the recent launch of spot Bitcoin ETFs is likely to attract more institutional capital. Within the first month of the launch itself, the combined holdings of all nine Bitcoin ETFs have surged past $10 billion. These spot Bitcoin ETFs offer institutions a more secured and regulated of investing in the asset class.