American hedge fund Schonfeld Strategic Advisors has disclosed investments in Bitcoin and Ethereum futures in documents recently filed with the SEC.
New York-based Schonfeld Strategic Advisors operates one of the best-performing funds of the past three decades, according to the Financial Times. The company, which started in the 80s as a family office to manage the wealth of founder Steven Schonfeld, opened up to outside investors in 2015, growing its assets under management significantly, reaching $12.000 billion last year.
Now, in addition to expanding its business model into other areas of traditional finance, Schonfeld Strategic Advisors has also opened up to the opportunities of the cryptoasset market.
Schonfeld Strategic expands its focus on Bitcoin and Ethereum
In a series of documents filed with the US Securities and Exchange Commission (SEC), the hedge fund disclosed its investments in futures contracts based on the two main cryptocurrencies on the market: Bitcoin y Ethereum.
The filings note that the company's bitcoin or ether transactions are limited to trading in exchange-traded futures contracts.
However, despite the company staying away from the spot market for crypto assets, Laura Shin, a former senior editor at Forbes and a prominent journalist and writer in the blockchain world, he highlighted Schonfeld Strategic Advisors has become the latest Wall Street player to delve into cryptocurrencies, expanding its focus toward the innovation that these digital assets offer.
Wall Street in the cryptocurrency market
As Shin noted, major Wall Street companies and institutions have been accelerating their entry into cryptocurrencies in recent years, driven by the innovation of these digital assets and their underlying technology, blockchain.
Names such as Point 72 Asset Management y Brevan Howard, are some of those who have ventured into cryptoassets to explore the opportunities of this emerging sector. Likewise, Goldman Sachs, JPMorgan, Jane Street y Jump Trading, have entered the crypto sector, backing various projects, running digital asset operations, and even creating their own blockchain platforms and crypto asset units, such as Jump Crypto. However, it is also true that some companies such as Jane Street and Jump Trading have slowed down their involvement in crypto assets, due to the regulatory uncertainty that weighs on the crypto industry in the United States.
Still, the involvement of these companies in cryptocurrencies has had a significant positive impact, which has been contributing to the market's maturation and legitimization, as well as the inflow of new capital and increased activity and liquidity. On the other hand, with the approval of Bitcoin spot ETFs in the United States this year, the cryptocurrency has been gaining increased interest, motivating more companies and institutional investors to explore this regulated access route.
As reported by this media, BNY Mellon, the oldest bank in the country, is Investing in Bitcoin through Exchange Traded Funds. In the same way, Quattro Financial Advisors chose spot ETFs to gain exposure to the largest cryptocurrency on the market, Bitcoin.
Continue reading: More wealth managers are investing in Bitcoin, attracted by spot ETFs
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