One River Asset Management Admits Holding 1 Billion In Crypto
Last Updated on 23 March 2021 by CryptoTips.eu
The big Wall Street names that came forward this year and admitted they were buying up Bitcoin and other cryptocoins thus far were Paul Tudor Jones (who did so in May already) and Stanley Druckenmiller (who came forward in November). As Fidelity, Microstrategy, PayPal, Square and many others followed, we thought we heard it all for 2020.
It now appears that a known hedge fund, which normally specializes in placing highly volatile bets, has been quietly buying up some $600 million in cryptocurrencies. By now, their investment of mostly Ether and Bitcoin, has already grown to $1 billion.
One River Asset Management
Wall Street titan Eric Peters, the current CEO of hedge fund One River Asset Management, admitted in a recent Bloomberg interview that there is growing interest among institutional investors in cryptocurrencies. The news was also featured in the Washington Post.
There is going to be a generational allocation to this new asset class
Peters admitted when asked about the crypto investments of the fund.
The flows have only just begun.
His investments in cryptocurrencies really took off in during the coronavirus selloff in March (known in the cryptosphere as Black Thursday, when Bitcoin dropped some 50% in one day).
As he was able to swoop in at the bottom, the part of the fund that manages the crypto wallets are up 33% and 40% this year, respectively. In all, his firm handles some $1.6 billion in investments for various clients.
Covid-19 provided the ultimate catalyst for that transition. This is the most interesting macro trade I’ve seen in my career.
Australian funds not too convinced
Another sound was to be heard on the other side of the globe today, where Geoff Wilson, chairman and founder of $3.5 billion fund Wilson Asset Management, claimed in the influential Sydney Morning Herald that he thought Bitcoin was too hot to be touched at this moment. He stated:
As an investment, it is extremely volatile and appears to be easily manipulated.
Thus it is not a prudent investment, it is not strategic for us as an investor and in our view, it is not sustainable.
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