A London Hedge Fund with $55 billion in assets under management has become the latest institution to enter the crypto market, reported Financial Times. The hedge fund is looking to invest in blockchain technology and payment systems for cryptocurrencies as well as stablecoins.
Marshall Wace, the London-based institutional investment firm is reportedly looking to launch a private portfolio that will invest in digital finance companies. Wace might be venturing into the crypto ecosystem now, but the investment firm had already invested in Circle, the US financial technology firm behind the stablecoin USD Coin.
The hedge fund is talking to potential investors for its private portfolio and there is no clarity on the size and the launch date of the portfolio. The announcement comes just weeks after a recent survey that suggested that hedge funds would increase their crypto allocation by 7.2% in five years.
Wace to Focus on Stablecoin Infrastructure
A person familiar with the matter suggested that the focus of investment by the Wace group would be centered around building stablecoin infrastructure. The new digital asset venture would be headed by Amit Rajpal, chief executive of Marshall Wace. The private portfolio would be quite similar to its healthcare fund that invests in healthcare firms before floatation.
The crypto market has continued to gain institutional attraction this year despite a bearish downtrend in the market for almost two months now. The number of hedge funds, banking giants, and other investment firms investing in crypto continues to rise despite regulatory uncertainty from the government. This kind of funds not only help institutional clients to get crypto exposure but also ensures a complaint and secure product that big investors can invest in.
The UK hedge fund’s focus on digital asset infrastructure building especially stablecoins that offers a bridge between traditional finance and digital assets also signifies the growing focus of mainstream financial institutions to make an impact in the crypto universe. Over the past year, the sentiment of these traditional institutions has changed significantly who used to view the digital asset ecosystem as a speculative investment are now building bridges for their clients to get access to the crypto ecosystem.