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<p>Institutional investments in Bitcoin (BTC) and Ethereum (ETH) have been <a href="https://coingape.com/microstrategys-bitcoin-accumulation-hits-190000-btc-amid-q4-revenue-dip/" target="_blank" rel="noopener noreferrer nofollow">soaring</a> over the past few months! A recent Reuters report suggests that Peter Thiel-backed Founders Fund invested a hefty $200 million in these two cryptocurrencies in late summer 2023. Also, the fund has reportedly split its $200 million investment into equal amounts in BTC and ETH.</p>
<h3 id="founders-fund-re-entry-into-bitcoin-market">Founders Fund Re-entry Into Bitcoin Market</h3>
<p>As per sources familiar with the matter, the Founders Fund started acquiring Bitcoins last summer when it was trading under $30,000. However, this was not the first time that the fund was making a bet on the largest cryptocurrency.</p>
<p>Founders Fund, a notable institutional investor in the crypto space, embarked on an aggressive acquisition of Bitcoin as early as 2014. However, the firm opted to <a href="https://coingape.com/former-facebook-investor-sells-bitcoin-worth-1-billion/" target="_blank" rel="noopener noreferrer nofollow">liquidate its holdings</a> prior to the 2022 crypto market crash, resulting in approximately $1.8 billion in returns, <a rel="noopener noreferrer nofollow" href="https://www.reuters.com/technology/peter-thiels-founders-fund-made-200-million-crypto-investment-before-bull-run-2024-02-13/" target="_blank">reports</a> Reuters.</p>
<p>This previously undisclosed action by the esteemed Silicon Valley venture capital firm highlights a resurgence in token investments among institutional investors. Many funds that sought an exit after the crypto market crash of 2022, are now making fresh entries.</p>
<p>In 2022, the price of Bitcoin plummeted to nearly $15,000, marking its lowest value since 2020. Despite this setback, both Bitcoin and Ether prices have steadily rebounded over the past year, culminating in Bitcoin surpassing the $50,000 milestone for the first time in over two years. However, it still trades under the all-time high levels of $69,000, back in 2021.</p>
<h3 id="peter-thiel-and-crypto">Peter Thiel And Crypto</h3>
<p>PayPal co-founder Peter Thiel has publicly expressed admiration for Bitcoin, lauding it as a store of value akin to gold and a safeguard against the policies of central banks. Bitcoin’s foundation on blockchain technology, operating independently of traditional financial institutions, resonates with Thiel’s interests in libertarianism, limited government, and technological progress.</p>
<p>This affinity for cryptocurrency dovetails with Thiel’s broader investment philosophy. Founders Fund, renowned for its early support of companies like SpaceX and Meta, now manages assets exceeding $12 billion. In a strategic move reflecting the growing importance of crypto assets, the fund welcomed Joey Krug as a partner in April 2023, specifically tasked with overseeing crypto investments.</p>
<p>Now with the arrival of spot Bitcoin ETFs last month, the institutional inflows into Bitcoin have surged significantly. A <a href="https://coingape.com/eth-price-rally-3500-as-franklin-templeton-applies-for-spot-ethereum-etf/" target="_blank" rel="noopener noreferrer nofollow">spot Ethereum ETF</a> is also likely to arrive by May 2023 which could lead to more institutional participation going ahead.</p>
<p>The post <a href="https://coingape.com/peter-thiel-backed-founders-fund-invests-a-massive-200-million-in-bitcoin-and-ethereum/" rel="noopener noreferrer nofollow">Peter Thiel-backed Founders Fund Invests A Massive $200 Million In Bitcoin and Ethereum</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Peter Thiel-backed Founders Fund Invests A Massive $200 Million In Bitcoin and Ethereum

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