Investment fund to offload $750 million in BTC for Cardano (ADA) and Polkadot (DOT)
Dubai-based crypto investment fund FD7 Ventures announced it will be selling its $750 million worth of Bitcoin to buy Cardano (ADA) and Polkadot (DOT). The investment fund said it hopes to sell the Bitcoin and invest in the altcoins over the next 30 days.
The company said the move is made to provide a better service for its investors who are looking to diversify their investments to other altcoins.
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Although there are still long-term opportunities for Bitcoin, many investors are seeing a saturation in the growth of the coin. As a result, they are diverting to other crypto assets with higher potential to do better in the long-term.
Long-term growth predicted for ADA and DOT
FD7 currently has $1 billion in assets under management (AUM) and believes that the value of Polkadot and Cardano will be much higher than that of Bitcoin in the coming years.
With the massive shift of its holdings to DOT and ADA, it means the fund wants to invest 75% of its entire AUM in the two altcoins.
The fund said it has strong confidence in the future of both tokens, which has triggered its decision to go long on them.
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Polkadot hits all-time high
Both Cardano (ADA) and Polkadot (DOT) have a combined market capitalization of about $65 billion. This is still far from the value of Bitcoin (BTC) in circulation, which has hit $1 trillion.
The two tokens have been doing great in the market over the past few days. Polkadot in particular reached an all-time high earlier in the week before its much-awaited parachain auctions. After the parachain auction, the network will be able to connect easily with other well-recognized blockchains such as Ethereum and Bitcoin.
Prakash Chand, managing director of the fund, stated that Bitcoin has no better value than Ethereum or Cardano. He added that the only reason why the coin has such a high price tag is the fact that it was the first cryptocurrency in the market. He said projects such as Polkadot and Cardano will have more usability and value than Bitcoin in the next few years.