A major pension fund announced the launching of a $50.0 million Ethereum-based investment fund. The new fund comes courtesy of OMERS, one of Canada’s biggest pension funds. OMERS is known of making strategic investments in the technology sector. In fact, it scooped up cheap assets during the financial crisis of 2008, which paid off suitably in the following decade. OMERS has managed to predict cryptocurrency market’s boom among others.
John Ruffolo, Executive Managing Director of OMERS Platform Investments and Board Director for Ethereum Capital stated:
“OMERS has been active in the blockchain and crypto sector for several years now.”
“OMERS believes in the potential of blockchain technologies and I am thrilled to join a strong network of advisors as Ethereum Capital creates value in the sector,” he added.
The name of the new fund is Ethereum Capital. It will draw expert advisors from partners such as Purpose Investments, Citizen Hex Inc., L4, and (of course) OMERS. Industry veteran Som Seif will head up the team as Executive Chairman and Co-CIO.
Ethereum Capital will get Canaccord Genuity Group Inc (TSE: CF) and CIBC Capital Markets to issue 20 million units at $2.50 per piece. Access will be permittable only to accredited investors. By the end of the round, the fund expects to raise $50.0 million.
Some things to remember:
- The fund is not denominated in ETH
- The fund will buy ETH after raising funds from investors
- $50.0 million is not a lot of venture capital
- There are three involved institutional players in the offering: OMERS, Canaccord, and CIBC.
- This is a small step for crypto but a giant step for Ethereum
Regarding Ethereum prices, they are not expected to surge immediately, but it is evident that Ethereum gain institutional support.