David Swensen, CIO of Yale, invests in Andreessen and Pardigm cryptographic funds

A big challenge for venture capitalists is that crypto-bets such as tokens and digital currencies are very different from large holdings in new companies, forcing reluctant fund managers to take risks at home. adapt to a new set of problems.

"People are excited about this, but are afraid to be first, or to have to explain themselves," said Bill Barhydt, CEO of the company. Abra crypto-encryption. "It's the fear of greed for institutional investment.There is a group mentality as much as in retail investment."

Last year, bitcoins jumped more than 1,000% to nearly $ 20,000, rewarding miners and enthusiasts. But rumors of hacking, regulatory uncertainty and failed projects hit the market, and the price of bitcoin dropped to about $ 6,500. Some 223 funds dedicated to cryptocurrency appeared in 2017, compared with 23 only the year before. As of September 1, there was a total of 389 global cryptocurrency funds, according to the latest data from Autonomous Next.

Yet companies like Andreessen Horowitz focus on long-term investments in space.

Chris Dixon, who manages Andreessen Horowitz 's cryptographic investments with Katie Haun, told CNBC, at the launch of the fund, that it was "all – time" betting that ". they will do over time, regardless of the market conditions. Over a period of two to three years, the company will invest in everything from early-growth coins and tokens to newer networks, such as bitcoin or ethereum, and keep them for a decade.

Andreessen Horowitz had already invested in cryptography well before the dedicated fund, and had supported Coinbase in 2013. As of June, the company had announced that it had sold none of its investments in cryptography.

The fund is a good entry point for Swensen. Yale has been an investor in the company's previous funds as part of a portfolio comprising investments in funds managed by Benchmark and Greylock Partners.

Paradigm is a brand new company that has not yet announced its existence, but it also bears familiar names for Swensen. Ehrsam comes from Coinbase and Huang worked at Sequoia, a company that generated good returns for Yale.