London-based investment manager Man Group Plc is preparing to launch a cryptocurrency hedge fund and digital assets.
According to a November 18 Bloomberg article, Man Group is getting ready to introduce its cryptocurrency-focused hedge fund through its computer-driven trading subsidiary AHL.
Bloomberg stated that the new hedge fund might be prepared by the end of the year, citing unnamed private sources. When contacted, a representative for Man Group declined to comment on the situation.
Through AHL, which regularly trades cryptocurrency futures, Man Group has already acquired exposure to digital assets. The company managed $138.4 billion in assets as of the end of September, which is a modest decrease from the $142.3 billion it managed at the same time last quarter.
The company trades publicly on the London Stock Exchange and is a component of the FTSE 250. Over the past two years, institutional interest in digital assets like Bitcoin (BTC) has increased, in part due to the realization that cryptocurrencies are a new investment class.
However, the absence of clear laws and the belief that fund managers cannot publicly support the industry due to fiduciary norms have hampered widespread institutional exposure to cryptocurrency.
The recent failure of FTX and the accompanying Chapter 11 filing of the company may have hampered the push for widespread adoption of cryptocurrencies. Some people think that FTX’s failure will increase regulatory scrutiny on the sector at a time when investors were hoping for more definite and perhaps advantageous rules.
