THELOGICALINDIAN - Are barrier funds accessible to go allin on cryptocurrencies Probably not but some of them are absolutely dipping their toes in The affair is those toes are astronomic In the commodity Mainstream Barrier Funds Pour Billions of Dollars Into Crypto the Wall Street Journal does a abysmal dive into the abnormality And we get a afterpiece attending into whos accomplishing what and who isnt there yet
According to Coinbase’s numbers, “institutional investors as a accomplished traded $1.14 abundance of cryptocurrencies in 2021, up from $120 billion the year before, and added than alert the $535 billion for alone investors.” Those numbers bang accomplished predictions made aloof nine months ago, which, of course, NewsBTC covered:
“As per Intertrust, the after-effects of the analysis announce that barrier funds plan to access their crypto assets in the abutting bristles years.
An boilerplate amount based on the responses shows that by 2026, funds aim to accumulate $313 billion in agenda assets, which is about 7.2% of their absolute assets.”
Why are they advance so much? And, what are the funds that abjure thinking? That’s what we’re actuality to acquisition out. Let’s alpha with a adduce from Michael Botlo, who ran Quantbot:
“The crypto cosmos is now aqueous and ample abundant to be tradable. Hedge funds are seeing their own investors appeal that the firms get involved.”
Which Hedge Funds Are In And What Are They Doing?
The latest account point to Brevan Howard Asset Management and Tudor Investment Corp., acreage of Paul Tudor Jones, who a few months ago said bitcoin is 100% certain. What are these barrier funds doing, exactly? Let’s adduce the WSJ:
Ok, great, but, why are those barrier funds activity that route? Galaxy Digital Holdings’ Robert Bogucki tells us, “More funds see crypto as a fifth asset class.” And then, gain to accord us some absolute alpha into the barrier fund’s strategy:
“One aberration from banal trading: Most barrier funds are alienated shorting cryptocurrencies, says Mr. Bogucki, afraid that these currencies ability shoot up in price, arch to quick and big losses. Most funds accept focused on affairs tokens and trading futures, rather than arena options markets, which can be harder to barter admitting advantage action is growing.”
Why Are The Hedge Funds Going That Route?
The affidavit are added cut-throat than bodies ability think. For example:
What About The Naysayers?
Not all barrier funds are on lath with cryptocurrencies. The commodity mentions Elliott Management Corp’s Paul Singer who “has been abrupt in his skepticism of cryptocurrencies”. Also, Citadel’s Ken Griffin. It’s account acquainted that Ken Griffin was slamming bitcoin four years ago, but, afresh he appear that Citadel Securities will action cryptocurrency services. As appear by Bitcoinist:
“In an interview with David Rubenstein of Bloomberg Wealth, Griffin mentioned that the accepted geopolitical conflicts actualize arresting bottomward block of animation with the markets.
Concerning agenda assets, the Citadel architect had a turnaround in his attitude as he appear the affairs of his aggregation dispatch into the crypto bazaar this year.”
Ok, but, why are these barrier funds adjoin cryptocurrency investing? The commodity quotes Squarepoint Capital’s Maxime Fortin adage that “there are cogent authoritative hurdles.” Also, Raposa’s Agustin Lebron, who says:
“In abounding ways, trading crypto is akin to added trading assets, but there are altered kinds of risks. By the time you’re accessible to hit the button and barter for real, the crypto apple may accept confused on.”
So, the crypto ecosystem moves too fast and is not adapted abundant for some barrier funds. Got it, but, what about first-mover advantage? Isn’t the befalling account the shot?
