A big name in Silicon Valley finance is about to take a new, deep, and direct plunge into cryptocurrencies, if a recent newspaper article is accurate. The Financial Times reported Friday, citing "four people with knowledge of the process," that high-profile venture capital firm Andreessen Horowitz aims to raise a cryptocurrency fund powered by $800 million to $1 billion in investment capital.
The fund would invest not only in such currencies but also in start-up businesses connected with them.
The firm is no stranger to cryptocurrencies. It was an investor in Coinbase Global (COIN -6.68%), the trading platform that recently went public and currently stands at a market value exceeding $55 billion.
The report comes at a frothy time for "cryptos," which have enjoyed a surge in popularity of late. Many people and companies in traditional finance are developing or expanding cryptocurrency businesses, and they have become more accessible to individuals thanks to recent rollouts on platforms such as those operated by PayPal Holdings.
The article didn't mention any specific cryptocurrencies Andreessen Horowitz intended to transact in for its fund. It's almost certain the list includes Bitcoin (BTC 0.43%), as that is not only the benchmark cryptocurrency but is also by far the most popular one among fans of this type of money.
Andreesen Horowitz has not yet responded to the Financial Times article.
The firm is a Silicon Valley mainstay. Founded in 2009 by tech entrepreneur Marc Andreessen -- perhaps most famous as the co-founder of onetime browser king Netscape -- and his peer Ben Horowitz. Andreessen Horowitz's list of investments reads like a Who's Who of the 21st century economy. In addition to Coinbase, the firm contributed capital to Twitter, Facebook, and Lyft, among many others.