Bitcoin investment firm NYDIG raised $50 million for its seventh fund to invest in cryptocurrencies, the firm said in a regulatory filing.
NYDIG opened the fund on Nov. 16 and a single investor contributed the full amount. The firm plans to leave the fund open indefinitely.NYDIG launched its first digital asset funds late last year when the NYDIG Digital Assets Fund I raised $50 million and the NYDIG Digital Assets Fund II raised $100 million from institutional investors. Fund I invested entirely in bitcoin, but it’s not clear if that’s the case for the latest fund.The NYDIG funds tend to attract investors with deep pockets. The first digital asset fund included two backers and the second had one investor.NYDIG, a subsidiary of Stone Ride Holdings, has longstanding ties with traditional financial institutions. Earlier this year, NYDIG partnered with NCR to make crypto purchases available to 650 banks and financial institutions. U.S. Bank recently introduced a cryptocurrency custody program with NYDIG as its backer.Crypto fund launches have accelerated this year as digital asset prices rally. Earlier this month, Paradigm, the firm from Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, announced a $2.5 billion fund, the largest ever in the crypto industry.