In a bold move to improve the infrastructure of the Bitcoin ecosystem, LK Venture, the renowned crypto investment and research institution affiliated with Hong Kong-listed Blue Harbor Interactive (08267.HK), has announced a strategic investment in MAP Protocol. This investment, channeling through the BTC NEXT fund, shows LK Venture’s commitment to develop a robust Bitcoin network ecosystem and highlights the growing importance of Layer 2 (L2) solutions in the Web3 market.
LK Venture Recognizes Bitcoin’s Growing Dominance
Following the SEC’s green light for spot Bitcoin ETFs, the debut of spot bitcoin exchange-traded fund (ETF) trading was marked by a significant lead by Grayscale Bitcoin Trust (GBTC), a revamped version of an existing financial product. The inaugural trading day saw an impressive $4.6 billion in trading volume for spot bitcoin ETFs on U.S. exchanges.
Excluding GBTC, the primary contenders in the spot bitcoin ETF space were offerings from Blackrock (BLK) and Fidelity. Blackrock’s iShares Bitcoin Trust (IBIT) registered over $1 billion in trading volume, while Fidelity’s Wise Origin Bitcoin fund (FBTC) recorded upwards of $700 million.
This clear demonstration of Bitcoin’s robust entry into mainstream finance, led by giants like Blackrock, is igniting interest from various ventures. Among them, LK Venture is making a strategic move to further expand the BTC market, capitalizing on the growing acceptance and integration of Bitcoin in the financial market.
LK Venture’s decision to invest in MAP Protocol, a leading Bitcoin L2 infrastructure, aims to develop robust strategies. MAP Protocol, established in 2019, has been leading the development of peer-to-peer cross-chain interoperability solutions over the past five years.
The protocol leverages the security of the Bitcoin network and incorporates advanced light clients technology based on Zero-Knowledge Proofs (ZK). This ensures not only the security anchored by the Bitcoin network but also allows for seamless interaction between assets and users of other public chains and the Bitcoin network.
Peng Deng, partner at LK Venture, said, “With the approval of Bitcoin spot ETFs, we expect to see a significant increase in demand around the Bitcoin ecosystem. We are optimistic about MAP Protocol’s leading technical underlying strength and the ability to build a Bitcoin layer 2 (L2) ecosystem, and look forward to jointly promoting more innovation in the Bitcoin ecosystem and DeFi applications through this cooperation.”
MAP Protocol’s Robust User Base Meets LK’s Demand
With over 620,000 on-chain users, MAP Protocol has developed a significant sector in the crypto ecosystem. The investment by LK Venture holds MAP Protocol’s potential in expanding the capabilities of the Bitcoin network, offering a range of applications including project launches, asset trading, lending, cross-chain asset transfers, on-chain gaming, and NFTs.
Previously known as Consensus Lab, LK Venture Blueport Interactive has established itself as a leading crypto investment and research institution. With a focus on the growing Web3 field, the institution has an impressive track record of investing in market-leading infrastructure, trading platforms, technology protocols, and financial instruments. Its portfolio boasts investments in high-profile projects like now bankrupt FTX, Polkadot, Filecoin, Casper Labs, and Coin98, spanning North America, Asia, Europe, and other regions.
In November 2023, Langang Interactive launched BTC NEXT, an investment management fund with a focus on the Bitcoin network, with an initial scale of $15 million. The fund aims to invest in emerging crypto assets within the Bitcoin network ecosystem. This includes a range of areas such as asset issuance protocols, trading markets, scaling solutions, virtual machines, NFTs, Real-World Assets (RWAs), and GameFi games.
BTC NEXT has already made significant investments in various projects, including a Bitcoin open-source wallet and the Ordinals/BRC-20 infrastructure and service provider UniSat.
