Runes Liquid Fund launches with $3 million investment as halving nears

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Sora Ventures, a venture capital firm focused on the Bitcoin ecosystem, has announced the successful raise of $3 million to launch a Runes Liquid Fund, a new investment vehicle dedicated to investing in liquid assets on the Runes Protocol. Investors include Bankless Ventures, SpaceshipDAO, entities from BTC Inc. Bitcoin Magazine, and Serafund.

Runes refers to a new fungible token protocol introduced to the Bitcoin blockchain. This protocol is designed to facilitate the creation, issuance, and transfer of Bitcoin-native digital commodities, potentially transforming how digital assets are managed and exchanged on the network.

The Runes protocol is built upon an indexer-based model that extends the social consensus mechanisms first popularized by the Ordinals initiative. It utilizes a UTXO (Unspent Transaction Output)-based system, where tokens, known as Runes, are directly issued into a UTXO during the transaction that sets their initial supply, ticker symbol, and decimal precision. This approach is closely aligned with Bitcoin’s native design principles and aims to provide a more efficient and flexible management of token balances and transfers.

One of the key features of the Runes protocol is the introduction of Runestones, which are akin to “precompiles” for Runes. These instructions are stored within the OP_RETURN of a transaction and are responsible for facilitating the movement of Runes from inputs to outputs. They also ensure future compatibility through an even-odd tagging system.

The Runes protocol is expected to support a wide range of applications and interactions, from intricate inscriptions that could influence the abilities of digital collectibles to facilitating off-chain liquidity pools for Rune trading. This opens up new possibilities for DeFi on the Bitcoin network, which has generated excitement within the community.

The launch of Runes is strategically timed to coincide with the Bitcoin halving around April 20, and the Runes protocol is set to launch at this time. Runes were created by developer Casey Rodarmor, who is also known for creating the Ordinals protocol. The introduction of Runes is seen as a significant evolution in the Bitcoin protocol’s capabilities for handling digital assets directly on its blockchain.

Bitcoin Liquid Fund supports Ordinals ecosystem

According to Jason Fang, Managing Partner at Sora Ventures, the Runes Liquid Fund will serve as a bridge to bring top Ethereum investors into the Bitcoin ecosystem as the firm continues its efforts to support the growth of the Ordinals ecosystem. The fund will invest in various assets, including memes, NFTs on the Runes Protocol, and fungible tokens built around the Runes narrative.

Fang emphasized the importance of educating investors by demonstrating actual alpha from their investments, stating, “There is no better way to educate investors than to show them actual alpha from our investment.”

As the Ordinals ecosystem continues to gain traction, Sora Ventures aims to expand its business beyond the initial fund to provide more investors outside of Bitcoin with exposure to this growing sector. The firm’s venture arm, Sora Ventures Fund 2, recently announced plans to convert 70% of its $50 million assets under management towards the Ordinals ecosystem. Fang confirmed that more than 50% of the fund has already been verbally committed, and the firm is actively seeking to onboard more institutions interested in gaining exposure to the rising Bitcoin Ordinals scene.

In addition to its investment activities, Sora Ventures has invested in over 30 companies in the Bitcoin Layer 1 space, taking a unique approach that has established the firm as a Bitcoin L1-heavy fund. The firm has not invested in any Bitcoin Layer 2 projects to date.

To further support the Ordinals ecosystem, Sora Ventures is hosting one of the largest Ordinals conferences in Taipei, Taiwan. The event, to be held in the City of Taipei on December 13-14, is expected to attract more than 150 speakers worldwide to discuss the latest developments and opportunities in the Ordinals space.

As the Bitcoin Ordinals ecosystem continues to evolve and grow, Sora Ventures is positioning itself as a key player in driving innovation and investment in this emerging sector. With its focus on liquid assets, venture investments, and educational initiatives, the firm aims to play a significant role in shaping the future of the Ordinals ecosystem.

Disclaimer: Sora Ventures is an investor in CryptoSlate.

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