Investment and hedge fund One River Asset Management is the latest institutional player to join the Bitcoin investment game, the market-leading cryptocurrency that has just surpassed its 12-year all-time high.
We have said many times in this medium that 2020 will be remembered as the year in which institutions decided to exploit the potential for performance and reserve of value offered by Bitcoin (BTC) and cryptocurrencies, , and it seems to be true. The Bitcoin ecosystem has seen the arrival of four major companies and institutional investors this year, who have contributed more than $1.040 billion to the ecosystem, and counting. Because every day new participants are jumping into investing in the digital asset industry.
Thus, One River Asset Management, based in Greenwich, Connecticut, is one of the largest hedge funds in the world, managing assets for some of the most prestigious institutions, and is also the latest institutional player to join the BTC bet, with an investment of more than 600 million dollars in the cryptocurrency.
One River Asset Management CEO, Eric Peters, revealed during a recent interview which holds a position of over $600 million in Bitcoin and in Ethereum (ETH), and that the fund's goal is to expand this stake to more than $1.000 billion by early next year. Peters also noted that he has created a new company to manage funds in the market's leading cryptocurrencies, and to take full advantage of the growing interest of institutional investors in these digital assets.
Peters noted that One River’s investment in Bitcoin was finalized in November, when the cryptocurrency was below $16.000 USD, but that it did not disclose it so as not to “trigger a surge in Bitcoin prices”; the same as with Ethereum.
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A big bet that promises more investment
As a strategic partner of One River is Alan howard, the co-founder of one of Europe's largest hedge funds, Brevan Howard Asset Management, which has more than $7 billion in assets under management. According to the interview cited by Bloomberg, Howard is playing several supporting roles, and in addition to being one of the lead investors in One River Digital’s funds, he is also buying a 25% stake in the business (One River Asset Management).
The company notes that One River Bitcoin FundOne River, the new Bitcoin fund, is designed to offer the performance of cryptocurrency in the markets to institutional investors, in a safe and guaranteed way, so a large participation is expected. Likewise, One River assures that it will use the best custody services to guarantee the security of the funds, as well as advanced cybersecurity techniques, administrators, auditors and legal advisors.
One River also believes that mass, large-scale adoption of Bitcoin and cryptocurrencies by institutional investors is just beginning, so its product is designed to incentivize and drive this “substantial innovation” in the coming years.
“One River believes that digital assets and blockchain technology are on the verge of mass adoption.”
Finally, the company refers to global monetary devaluation as a key factor that will continue to spark and drive interest in digital assets, as institutions are looking for efficient investment alternatives to protect their investments against inflation.
MicroStrategy continues to lead institutional investment in Bitcoin
So far, the most prominent institutional participant in Bitcoin has been microstrategy, the publicly traded business intelligence company, with an impressive total investment of $775 million in this cryptocurrency.
However, the investment that reveals One River guarantees him the second place among the largest institutional investors of BTC, followed by Stone Ridge Holdings Group, a fund and asset management company and parent company of NYDIG, which made a total investment of $115 million in BTC; MassMutual (Massachusetts Mutual Life Insurance Co.), an American life insurance company, with a total investment of $100 million in BTC; and Square, the financial services company of successful billionaire Twitter CEO Jack Dorsey, with $50 million in the cryptocurrency.
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