Hong Kong’s C Capital to Raise $500 Million to Invest in Cryptocurrencies: Report

C Capital, a company founded by Hong Kong billionaire Cheng Zhigang, reportedly plans to raise $500 million over the next year and a half to invest in digital currencies, credit and private equity.

The company believes that the cryptocurrency market has bottomed, which means now is the perfect time to delve into it.

“When people are defending, we are attacking”

According to September 21 coverage According to Bloomberg, C Capital plans to bring in a $200 million blockchain fund in 2023 and allocate about $300 million to private equity and private credit strategies.

The firm’s CEO and president, Ben Cheng, believes that the crypto winter has begun to ease, meaning the current environment is ideal for new investments to “produce the best results.” Contrary to many entities currently preferring to stay away from the digital asset market, Cheng said:

“When people are defending, we are attacking.”

Founded five years ago, C Capital is no newcomer to the cryptocurrency space. It has invested around $1 billion in digital assets and credit over the past few months, while its hedge fund’s primary focus is crypto trading. Cheng revealed that the company turned down other companies and angel funds at the seed stage because of their limited returns.

Since its inception, C Capital has invested in more than 60 businesses, including the popular blockchain gaming company Animoca Brands.

Is it time for a bull market?

A prolonged bear market in 2022 has wiped out much of investor interest in cryptocurrencies, with most prominent institutions preferring to stay away from the asset class when prices fall.

Still, some expect the cycle to come to an end soon, which could drive prices higher and potentially profit for those who entered the market at low levels.

Earlier this month, Dan Morehead, CEO of Pantera Capital, believed that “Bitcoin is in the next phase of its rally.” However, he was unable to give a precise timeline of when most digital asset prices will rise again:

“We’ve had three big bear market cycles. In fact, I think we hit a low in June and we’re entering the next bull market. It’s going to be tough, it may take a while, but I think we’re moving into the next round bounce back.”

On the other hand, Morgan Creek Capital Management CEO Mark Yusko believes that the next bull run will happen sometime in 2024, mainly driven by the BTC halving.

Notably, the crypto market, and more specifically the valuation of Ether, is expected to recover following the “merger” that took place last week. Nonetheless, it turned into a “sell the news” event as ETH dropped about 20% since the transition to PoS.