Stone Ridge gets into Bitcoin too
Big companies and investment funds no longer hide their attraction to Bitcoin (BTC). On the contrary, they’re bringing it out into the open, sharing details of their massive purchases of Bitcoin. Today, it is the Stone Ridge Fund – which manages $10 billion in assets – that announces that it has invested in no less than 10,000 BTCs.
In total, Stone Ridge’s subsidiary now has more than $1 billion in cryptosystems under management, primarily in Cryptosoft but also to a lesser extent in Ethers (ETH), Litecoins (LTC), XRP and Bitcoins-Cash (BCH).
115 million of BTC in reserve
Following MicroStrategy and Square, Stone Ridge Asset Management, a fund manager, announces a major acquisition of Bitcoins by one of its subsidiaries.
A report in Forbes newspaper reports that Stone Ridge’s New York Digital Investment Group (NYDIG) subsidiary acquired 10,000 BTCs, the equivalent of $115 million.
Although NYDIG was originally founded – in 2017 – to meet the demand of Stone Ridge’s clients, the fund has long since planned its investment in Bitcoin. It is not the only big institutional fish that wants to move into the cryptosphere. According to Robert Gut, co-founder of Stone Ridge and CEO of NYDIG :
„We’ve seen a fairly dramatic acceleration in the number of institutional investors wanting to participate in the [cryptomoney] market since March of this year…. The macro-economic situation that followed this public health crisis has led many people to rethink the composition of their investment portfolio. »
A crypto-fund ready for mass institutional investments
As mentioned above, Stone Ridge and the NYDIG have long been preparing for their entry into the crypto-active sector. Beginning in 2017, the subsidiary invested its first round of funding, $50 million, in developing trading and custody services for Bitcoin funds.
The NYDIG was also successful in obtaining the coveted New York State BitLicense to offer its services there. And these services are also adapted to different types of large investors:
„(…) Macro hedge funds are used to buying prime brokerage services. So that’s what we sell to them. Registered Investment Advisors are used to buying a set of advisory solutions for very large fortunes. And that’s what we sell to them. „Robert Gut
NYDIG’s clients include the Bitcoin Fund LP institutional fund, with $190 million in crypto-assets under management, and the Bitcoin Yield Enhancement Fund LP, with $140 million.
After the speculative bubble at the end of 2017 on Bitcoin prices, due to individual investors, many wondered when institutional investors would enter the „crypto-game“. It seems more and more that the answer is: this year 2020. And that seems to be only the very beginning.