Interview & Article by Anderson Sima, Executive Editor, Foresight News
Jason Huang, the founder of NextGen Digital Venture (NDV), is making waves in the financial world with his daring venture into cryptocurrency. Once a prominent figure in traditional venture capital, Huang is now reaping extraordinary rewards for his high-stakes bet on Bitcoin and related assets.
In December 2023, as Bitcoin traded at $43,000, Huang confidently predicted it would surpass $50,000 by May 2024 and reach $100,000 by year’s end. Less than a year later, his forecast is on the cusp of realization. Bitcoin’s price has already surged past $99,000, placing NDV’s first fund on track for an over 300% return in just 20 months.
A Strategic Pivot to Cryptocurrency
NDV launched its first fund in collaboration with Metalpha, a cryptocurrency wealth management firm listed on NASDAQ. Initially, Huang placed significant bets on the Grayscale Bitcoin Trust (GBTC), capitalizing on its deep discount to Bitcoin’s spot price. As the U.S. Bitcoin ETF gained approval, NDV shifted its focus to cryptocurrency-related stocks, such as Coinbase and MicroStrategy, which have yielded significant returns.
“In my view, securities linked to cryptocurrency represent the best avenue for institutional investors to enter this space,” Huang explained. “We aim to bridge traditional finance with the crypto world, offering familiar entry points through stocks.”
NDV entered the market in March 2023, when Bitcoin was priced at $29,000. Today, the fund’s performance outpaces Bitcoin’s gains, achieving a floating profit of over 300%.
Transitioning from Traditional Finance to Crypto
In 2022, at 34 years old, Huang left behind his career in venture capital to launch NDV. His background includes stints at Huaxing Capital, Qiming Venture Partners, and Blue Pool Capital—a family office co-founded by Jack Ma and Joseph Tsai.
Reflecting on his leap into the cryptocurrency industry, Huang acknowledged the skepticism he faced. “Many didn’t understand my decision. Even now, friends question my choice. But finance thrives on innovation, and I believe cryptocurrency offers opportunities akin to the internet and healthcare booms in China.”
Bitcoin as a National Strategic Asset?
Huang believes the changing U.S. political landscape under the Trump administration could accelerate Bitcoin’s adoption. He speculates that a pro-crypto administration, coupled with discussions around Bitcoin as a federal reserve asset, could propel its price beyond $200,000. “Even the mere consideration of Bitcoin as a reserve asset could ignite a price rally,” he noted.
Huang sees potential in Bitcoin’s evolution from “digital gold” to a strategic reserve asset for nations. However, he acknowledges that many sovereign funds remain cautious due to previous missteps in the cryptocurrency sector. “Traditional funds may hesitate to directly invest in Bitcoin, but the approval of Bitcoin ETFs will pave the way for institutional allocations.”
Beyond Bitcoin: Looking for Disruptors
While NDV primarily focuses on Bitcoin, Huang is also intrigued by disruptors in the cryptocurrency space. He compares Ethereum and Solana to e-commerce giants Alibaba and Pinduoduo, noting that Solana’s innovative potential reminds him of Pinduoduo’s ability to shake up market dynamics.
Huang’s investment strategy reflects his confidence in trusted founders and projects with transformative potential. “I treat investments in smaller cryptocurrencies as venture capital bets, fully prepared to bear losses,” he said.
Charting the Future
Looking ahead, Huang plans to liquidate NDV’s first fund at the next high point in Bitcoin’s cycle, which he predicts will occur within the next 12 months. Afterward, he aims to explore the integration of Web2 and Web3 technologies.
“Finance is about innovation on both the capital and asset sides,” Huang concluded. “NDV will continue bridging traditional financial capital with the crypto ecosystem, driving growth and unlocking new opportunities.”