FD7 Ventures, a Dubai-based crypto mutual fund with $ 1 billion under management, has announced plans to sell $ 750 million worth of bitcoin holdings next month. The proceeds from the sale will be used to buy Cardano and Polkadot as the fund’s executive believes ADA, DOT and ETH will be the foundation of Web 3.0.
Cardano and Polkadot are backed by large crypto funds
The crypto industry is ripe for news of large financial institutions and companies acquiring large amounts of Bitcoin. From Jack Dorseys Square, which tops the list with its massive BTC purchases last year, to PayPal and Visa’s crypto payment functionality, to MicroStrategys and Tesla’s billionaire acquisitions – there seems to be a corporate race to buy bitcoins .
However, a large cryptocurrency fund in Dubai has decided to take a different route and sell off the majority of its Bitcoin holdings. FD7, a global crypto mutual fund with $ 1 billion in assets under management (AUM), plans to sell $ 750 million of its BTC holdings over the next month.
According to the company’s press release, the proceeds from the sale will be used to increase the company’s positions in Cardano (ADA) and Polkadot (DOT). The increase in DOT and ADA holdings will better serve the needs of FD7 investors, the company said in the announcement.
Fund manager considers Bitcoin „useless“
Prakash Chand, the managing director of FD7 Ventures, says the fund’s investors are looking to diversify their portfolios in the crypto space.
„Aside from the fact that Bitcoin was the first to hit the market and society has given it importance as a store of value, I think Bitcoin is actually pretty useless,“ Chand said in the press release.
„Projects like Cardano, Polkadot and Ethereum are the basis for the new Internet and Web 3.0.“
And it’s not just portfolio diversification that has driven the fund to Cardano and Polkadot. According to the company, both Cardano’s founder, Charles Hoskinson, and Polkadot’s founder, Dr. Gavin Wood, „two of the brightest minds“ working in the field of crypto.
Both, the company said, are leading projects that it believes have the potential to have a significant global impact. Chand comments that he believes that Ethereum, Cardano, and Polkadot will be more valuable than Bitcoin within the next few years, which is why the company is trying to stay ahead of the market and expose its investors to its growing assets.