Can Bitcoin Inscription Rally Again? Which Institutions Are Beginning to Lay Out the BTC Ecosystem?

Bitcoin Inscription, as one of the hottest trends this year, has captured people's attention with its fair launch and impressive gains. With the approval of BTC spot ETFs, various sectors in the industry, including Layer1, Depin, and sports, have started to rotate. However, the Bitcoin Inscription trend seems to have lost some momentum.

In the early stages, Bitcoin Inscription attracted individual investors with its fair launch and novel concept. The market was primarily composed of retail traders. As the popularity increased, it also successfully drew institutional attention. This article will take stock of nine funds that have announced their intention to invest in the BTC ecosystem.

Ego Death Capital

According to Bitcoin Magazine, Ego Death Capital, a venture capital firm dedicated to the Bitcoin ecosystem, has announced plans to raise $100 million for its Fund II. The fund aims to support the growth of the Bitcoin ecosystem.

Founded in 2021, the company raised $25.2 million in its Fund I, along with a $7.5 million special purpose vehicle. The initial fund made strategic investments in companies such as Fedi, Breez, Synota, Relai, and Wolf.

Bitrise Capital

Blockchain-focused venture capital firm Bitrise Capital announced on X platform that it will establish a $50 million Bitcoin Ecosystem Growth Fund. The fund is dedicated to investing in Bitcoin ecosystem projects and covers both primary and secondary investments. Bitrise Capital mentioned that the company currently holds assets in the Inscription ecosystem, including ORDI and SATS.

ABCDE

New Huo Technology CEO and Executive Director Du Jun announced on Twitter that they are preparing to deeply participate in the construction of the Bitcoin ecosystem, with a focus on the Layer2 track. Du Jun mentioned that they bring $50 million with them. On the day the project goes live, they will disclose a $50 million USDT or equivalent Bitcoin address, dedicated to the development of this project.

Bitcoin Magazine Ventures

Bitcoin Magazine Ventures, managed by David Bailey and Tyler Evans, has launched the world's first Bitcoin ecosystem fund. This venture capital fund, dedicated to investing in the Bitcoin ecosystem, raised $30 million and has already been oversubscribed with $90 million. Sora Ventures, a venture capital firm, has supported Bitcoin Magazine Ventures by investing $3 million in the fund.

AC Capital

On November 28, according to Cryptoslate, Web3 venture capital firm AC Capital announced the launch of a new $20 million fund. The strategic investment focus of this fund will be on BTC ecosystem assets, non-EVM Layer 1 applications, chain-agnostic liquidity layers, and user-friendly cryptographic interface solutions.

BTC NEXT

Hong Kong-listed company Linekong Interactive will launch the BTC NEXT Bitcoin Network Ecosystem Investment Management Fund with a size of $15 million. According to Wang Feng, co-founder of Element and founder of Linekong Interactive, BTC NEXT is essentially a seed fund that will be used exclusively to participate in emerging cryptographic assets in the Bitcoin network ecosystem. This includes, but is not limited to, various types of asset issuance protocols, trading markets, scalability, virtual machines, NFT, RWA, and GameFi games.

Trustless Labs

Web3 incubator Trustless Labs has announced the launch of a $10 million incubation fund dedicated to fostering innovation and development within the Bitcoin ecosystem.

Smart Bitcoin Labs

Smart Bitcoin Labs recently announced the establishment of UTXO Fund I and UTXO Fund II, with a fund size of $5 million, focusing on investments in the areas of Bitcoin ordinals, Layer2, and DeFi.

Smart Bitcoin Labs, founded in March 2023, is one of the early institutions dedicated to research, investment, and incubation in the ordinals space. The organization has conducted in-depth research and laid out strategies in various areas such as Bitcoin asset protocols, Taproot, recursive ordinals, and Bitcoin scalability solutions.

OrangeX-500万

Cryptocurrency

exchange OrangeX has announced the launch of its $5 million innovation fund. The fund aims to support the Bitcoin ecosystem and drive blockchain innovation, with a core focus on investing in promising projects within the Bitcoin ecosystem, including Ordinals Protocols and BRC-20 standard tokens.

The institutions mentioned above have publicly announced the establishment of BTC ecosystem funds.

Can Bitcoin Inscription Usher in a Second Spring？

Unlike the traditional financial industry, the blockchain industry is rapidly evolving with new concepts emerging constantly. While BTC Inscription has garnered attention as a new concept, the development of the BTC ecosystem cannot be limited to the financial aspect alone.

In practical terms, establishing a high-quality BTC ecosystem requires a significant number of developers and sufficient financial support. With several institutions announcing the establishment of BTC ecosystem funds, the Bitcoin Inscription track is gradually transitioning from the era of individual investors to the era of institutions. This not only implies that many talented developers will receive continuous funding but also suggests that the development of BTC ecosystem projects will become more organized.

Furthermore, as public chains develop their own ecosystem projects, there are already several high-quality Layer1 platforms that can serve as templates, such as Ethereum and Solana. Therefore, in terms of attracting users and constructing various ecosystem projects, the Bitcoin ecosystem will gain more successful cases to serve as references.