Blockchain Capital

BCAP is a tokenised security representing an interest in a venture capital fund investing in blockchain companies. It was among the earliest attempts to put a regulated fund interest on-chain, and it illustrates both the promise and the limits of doing so.

Venture returns follow a power law

Most venture investments fail and a small number produce nearly all returns. That distribution means a fund's value is concentrated in a handful of positions, and interim valuations of private companies are estimates rather than prices. This is unlike any liquid instrument and should shape expectations accordingly.

Tokenisation improves transfer, not liquidity

Conventional venture fund interests are extremely difficult to transfer, locking capital for many years. A tokenised interest can move between eligible holders. That is a real improvement and it does not create a deep market — a transferable claim on an illiquid portfolio is still illiquid.

Valuation is periodic and estimated

Private company holdings are marked at intervals using judgement rather than observable prices. A token's market price can therefore diverge substantially from the reported net asset value in either direction, and neither figure is definitively correct.

It is a security, and treated as one

Eligibility restrictions and transfer controls apply. This is not a token anyone can buy, and the securities framework is what provides holders their disclosure rights and legal protections.

Who it suits

BCAP fits eligible investors seeking venture exposure to the blockchain sector who understand the return distribution and the illiquidity. It is not a substitute for holding liquid crypto assets and has a completely different risk profile.