In a move that should come as a surprise to no one,
early Facebook investor and PayPal co-founder Peter Thiel
was reported to have made a substantial investment
in bitcoin in mid-2017.
The report, published by The Wall Street Journal, indicated that
Thiel’s venture fund, Founders Fund, had amassed tens
of millions of dollars in bitcoin.
Following the report, bitcoin rallied more than 10%.
Thiel joins other notable VCs who have invested in the digital currency
including Union Square Venture’s founder and early Twitter investor
Fred Wilson as well as early Skype investor and Draper Associates
founder Tim Draper.
The news is notable because Founders Fund invests on behalf of large institutional
investors such as pension funds, endowments and sovereign wealth funds.
The latest report follows my previous predictions that large institutional investors
are currently reviewing this asset class as a potential investment.
With the recent bitcoin purchases, large institutions are beginning to indirectly
gain exposure to this new asset class.