Major British hedge fund Marshall Wace, which manages $ 55 billion in assets, has announced plans to invest in the cryptocurrency space. The company will invest in blockchain technology and payment systems for digital currencies and stablecoins. Marshall Wace will form a separate portfolio that will include privately owned companies from the digital finance space in the late stages of development. The move will respond to growing demand from large asset managers.
Marshall Wace hired employees to create a dedicated unit to deal with the digital asset market. Marshall Wace’s new business is just getting started. But the firm already plans to expand rapidly and may add other forms of investment. In the future, the fund may start trading cryptocurrency.
Marshall Wace declined to comment on the situation.
However, we note that the co-founder of the venture capital company Morgan Creek Digital Anthony Pompliano drew attention to this situation. According to him, Marshall Wace made an “official decision” to invest in the cryptocurrency industry.
Previous actions of Marshall Wace
This year, the firm opened a dedicated fund. To invest in healthcare companies prior to their listing on the stock market. In this way, she hoped to use additional sources of income in the private investment markets. The new cryptocurrency division will take a similar approach. Making venture capital investments in established companies that provide infrastructure for the cryptocurrency market.
The digital asset business unit will be led by Marshall Wace Asia CEO Amit Rajpal. The structure is also in talks with potential investors – the volume of the new fund is unknown.
Note that Marshall Wace previously took part in the May round of funding for cryptocurrency company Circle for $ 440 million.
Hedge funds plan to increase cryptocurrency investment
In early July, it became known that the investment fund of billionaire George Soros, Soros Fund Management began trading Bitcoins. Don Fitzpatrick, Investment Director of Soros Fund Management, gave permission to trade bitcoins and other cryptocurrencies. The fund also began negotiations to invest in large blockchain-based companies.
On July 1, the Latin America fund of Japanese conglomerate SoftBank invested $ 200 million in parent company Mercado Bitcoin, one of the largest cryptocurrency exchanges in South America.
As a reminder, a survey conducted in June 2021 showed that hedge funds are planning to increase investments in cryptocurrency in the next 5 years. So, according to a study by the administrator of funds Intertrust, by 2026 the share of cryptocurrencies in net assets of hedge funds will reach 7.2%. It is equivalent to $ 312 billion at the moment.
Nowadays, even former skeptics have started investing in bitcoin, with millions of dollars being invested both directly and through partnerships. Bitcoin has become an interesting case study for the cryptocurrency market, which provides high-risk but long-term profit opportunities.
However, Bitcoin and the rest of the cryptocurrency market are still facing regulatory uncertainty. Keeping many potential mainstream investors from entering.