Blockchain Fund

A Blockchain Fund is an investment vehicle specifically designed to provide investors with exposure to the rapidly evolving blockchain and cryptocurrency ecosystem. Unlike directly buying and holding individual cryptocurrencies, these funds offer a more diversified and often professionally managed approach to participating in this innovative space.

There are generally two main types of blockchain funds:

1. Blockchain ETFs (Exchange-Traded Funds):These funds typically invest in a basket of publicly traded companies that are directly involved in blockchain technology. This includes companies that develop blockchain infrastructure, manufacture mining hardware (like ASICs), provide crypto exchange services, or utilize blockchain for their core operations (e.g., supply chain management, digital identity). Examples include global ETFs that track blockchain-related indices.
2. Venture Capital (VC) Blockchain Funds: These are private funds that invest directly in early-stage blockchain and crypto startups. They provide crucial seed funding, strategic guidance, and industry connections to promising projects that may be developing new protocols, decentralized applications (dApps), or Web3 solutions. Pantera Capital, for instance, launched the first cryptocurrency fund in the U.S. and later a blockchain-focused venture fund.

For investors in Surat and across India, blockchain funds offer a way to gain exposure to the underlying technology’s potential without needing deep technical expertise in managing digital assets directly. While India’s regulatory landscape for direct crypto investments is still developing (with VDAs taxed at 30%), a blockchain fund investing in publicly listed companies might offer a different regulatory profile, depending on the fund’s structure and domicile. These funds aim to capitalize on the transformative potential of blockchain across various industries, from finance to logistics.