Crypto Hedge Fund Polychain Says No IPO in the Works

Cryptocurrency hedge fund Polychain Capital is pushing back against a report that it is seeking to raise hundreds of millions of dollars in an initial public offering (IPO).

Bloomberg, citing a source with knowledge of the process, reported Monday that the firm – which launched in 2016 with the backing of major investors like Andreessen Horowitz and Union Square Ventures – is looking to raise as much as C$400 million, or about $324 million, on the Toronto Stock Exchange.

But in an email to CoinDesk, Polychain principal and venture partner Ryan Zurrer pushed back against the report.

"This article is false. We are not planning an IPO in Canada and have not made any engagements to this effect," he wrote. The firm added that it isn't seeking an IPO in general.

If the listing were to take place, it would mark a significant development in the growing ecosystem of cryptocurrency hedge funds, which have positioned themselves to invest in the market for cryptographic assets. As many as a hundred or more have set up shop in order to pursue potential opportunities, according to reports from last year.

Traditional hedge funds have also been eyeing – and moving into – the market, according to past analysis. A December report from Morgan Stanley indicated that as much as $2 billion was invested in the market last year.

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