Peter Thiel's fund bought a significant amount of BTC and ETH

Peter Thiel's fund bought BTC and ETH worth USD 200 million a few months ago. The company has a long history of investing in cryptocurrencies.

Peter Thiel's fund invested in cryptocurrencies

According to a Reuters report, Peter Thiel's venture capital fund invested as much as USD 100 million in BTC and ETH. This gives a total of USD 200 million invested in two leading cryptocurrencies. However, the investment did not take place now, but at a time when talks regarding the creation of Bitcoin ETFs were intensifying in the United States. So it took place in 2023.

Founders Fund (which is the official name of Peter Thiel's fund) has been investing in digital assets for years. This strategy is bearing fruit. The fund earned over $1.8 billion during the previous bull market. He did this by selling BTC.

Let us add that while VC funds and hedge funds in the US, such as Founders Fund, could buy BTC directly on the open market, other, larger financial institutions had to wait until the beginning of this year and the creation of spot Bitcoin ETFs. Hence, more large entities with huge capital will probably enter the cryptocurrency market this year – via ETFs. This is already starting to have an impact on the bitcoin price.

The bitcoin price broke the level of USD 50,000 yesterday

The price of Bitcoin was just over $50,000 yesterday. It currently remains above this level (approx. USD 50,100). Many experts point out that this is the result of the existence of ETFs. At the beginning of February, these funds invested over $1.1 billion in bitcoin. In turn, according to a CoinShares report from February 12, since the creation of ETFs, these ETFs have purchased USD 2.8 billion in BTC.

Analysts from the Bitfinex exchange emphasize that ETF funds (excluding GBTC Grayscale) hold over 192,000 BTC, which gives us USD 59 billion in assets under their management.