Joining forces with Blockchain Assets Pty Ltd, venture capitalist Mark Carnegie hopes to bolster the Carnegie digital asset business as a “fund of funds”, offering Australian investors unique opportunities within the crypto, blockchain and decentralised finance (DeFi) space.
“From the start of my research and investment journey into this asset class, I have emphasised the importance of having extensive technical knowledge and network within the global cryptocurrency community,” said Mr Carnegie.
In announcing the partnership, Carnegie highlighted the success of Blockchain’s flagship “Blockchain Early Opportunities Fund”, managed by Perth-based investor, and chief executive, Ian Love. The fund invests in an extensive variety of cryptocurrencies, crypto commodities, crypto securities, non-fungible tokens (NFTs) and tokenised assets.
The fund returned 472 per cent in the financial year 2020-21 and has seen 245 per cent growth since inception in 2017, notably surviving the “crypto winter” of 2018-19 that eliminated many competitors from the industry.
“Ian has made some exceptional gains for his investors over the years,” said Mr Carnegie on the fund’s success.
“His fund complements our existing suite of crypto offerings and I strongly believe we could both work hammer and tongs for the next decade and still we wouldn’t be able to soak up the demand that’s coming.”
Notable investors of this “Blockchain Early Opportunities Fund” include the Bunning Family, James McClements of Resource Capital Funds and Michael Manford of Canaccord Genuity Financial, some of whom have stayed invested since the fund’s 2017 inception.
Both Mr Carnegie and Mr Love are bullish on the future of blockchain technology and the crypto markets, emphasising the ability of these assets to “democratise capital” and reduce wealth inequality.
“In blockchain, retail investors can invest as little as $100 in a start-up project, either in the application layer such as Coinbase or protocol layer such as Bitcoin, without obtaining permission and can easily liquidate when they want,” said Mr Love.
“This technology allows anyone on the planet with a smartphone to invest in any asset, from fine art to gold to currencies and stocks”.
As the crypto space continues to grow across Australia, so do debates on how the industry should be regulated.
Once again, Mr Carnegie and Mr Love were said to be aligned, agreeing that further regulation was needed, as long as this ensured retail investors have the same opportunities once only afforded to the wealthy and well connected.
“While wealthy investors continue to enjoy the benefits of regulated markets, retail investors, who need protection the most are left to fend for themselves,” said Mr Carnegie.
“This does not sound right to me... ASIC should try harder.”