UK asset administration agency Elwood plans to develop a large $1 billion bitcoin and cryptocurrency funding enterprise, it says.
Elwood Expands Cryptocurrency Publicity
Quoted by the Monetary Instances on August 30, Elwood, which is owned by billionaire Alan Howard, revealed it needs to funnel cash into crypto hedge funds.
The corporate isn’t any stranger to the crypto funding area, having launched a Blockchain exchange-traded fund (ETF) in March.
In keeping with the Instances, Elwood “is working on a platform that would design portfolios of crypto funds for institutional investors.”
Commenting to the publication, CEO Bin Ren mentioned that whereas warning was nonetheless wanted within the business, the chances for progress had been appreciable.
“Losing traditional assets in the real world is hard. In the digital world, it’s very easy to lose assets — put in the wrong address for a bitcoin transfer and it’s gone forever,” he warned.
Nonetheless, workers have already begun sniffing out applicable hedge funds, with 50 beneath the microscope for due diligence compliance.
“I see this as a very big growth opportunity,” Ren added.
Rebirth Of The Crypto Hedge Fund
The transfer underscores the renewed religion in crypto hedge funds in 2019. After a difficult yr in the course of the Bitcoin bear market, which noticed many funds fold, fortunes have returned.
“Bitcoin is here to stay. Long term it will be part of a lot of hedge fund portfolios,” Don Steinbrugge, CEO of Agecroft Companions instructed CNBC earlier this month.
The pattern kinds simply a part of a wider phenomenon amongst traders in search of publicity to the Bitcoin market specifically. This yr will see a variety of recent devices hit the market, beginning with Bakkt’s bodily futures buying and selling in September.
As Bitcoinist reported, after a number of delays, the corporate will lastly start accepting shopper BTC deposits subsequent Friday.
“These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody,” an announcement from the corporate on social media learn.
Future institutional involvement has in the meantime but to make a dent in Bitcoin markets. As of August 30, BTC/USD nonetheless languished under $10,000, having slid virtually 10% this week.
Settlement of CME Group’s Bitcoin futures happens at this time, one thing which has historically exerted strain on value. Leveraged merchants additionally felt the pinch this week, with BitMEX liquidating lengthy positions value $150 million on Thursday alone as Bitcoin fell.
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