Coin Metrics, an all-in-one cryptocurrency data and infrastructure provider for institutional investors, has raised a total of $6 million in a Series A funding round led by Highland Capital Partners.
According to the announcement on Thursday, the funding round also saw participation from Coinbase Ventures, Digital Currency Group, Castle Island Ventures, Avon Ventures, Raptor Group, FMR, and LLC.
Notably, Coin Metrics has been playing a significant role by enabling institutional investors to make proper investment decisions with its suite of comprehensive and informative crypto asset data products.
“Our ability to distill operational and economic activity occurring on a blockchain network, by running full nodes and performing deep analytics, is imperative for broader institutional investment in this space,” said Tim Rice, the CEO of Coin Metrics.
On this note, the crypto data provider said in the report that the fund raised will be used to further expand and strengthen its team, product offering, as well as to offer enhanced coverage of digital assets.
While emphasizing on the need for the enhancement, the Principal at Highland Capital Partners, Sean Judge commented:
“Financial institutions require clean and transparent data to make decisions. These same requirements exist for itcoin and other cryptoassets that have emerged over the last decade.
Created in 2017 by Nic Carter and Aleksei Nokhrin, Coin Metrics has grown to become one of the top destinations for network and market data as it relates to cryptocurrency. In year one of operation as a commercial entity, Coin Metrics secured enterprise contracts with several entities, such as crypto hedge funds, traditional hedge funds, etc.
Coin Metrics: Weak Hands on Bitcoin
In a report (‘State of the Network’) on March 17, Coin Metrics noted that short-term and new holders were mostly responsible for the massive Bitcoin sell-off in the first-to-second week of March, and not from the long-term holders.
The data was drawn from Coin Metrics’ revived supply tracker, which showed that only 4,131 BTC that were untouched for at least one year were brought back into circulation. However, 281k BTC that were left untouched for at least thirty days were revived at that time.