As per the Friday news report from TheStreet, New York-based  Asset Management firm  GoldenTree with financial assets worth around $45 billion is making investments in bitcoins.

Why Goldentree purchased bitcoin

Goldentree which is running in conservative debt-focused strategies for many years is now planning to diversify from it and make cryptocurrency investments. To add cryptocurrency to the balance sheet, it chooses to purchase Bitcoin (BTC) only. Although the amount of Bitcoin that has been purchased, the future planning about further investing in Bitcoin, sort of custody solution they are planning to use are yet unknown.

Other advancements of Goldentree in the crypto space

To further delve into the crypto space, executives at Goldentree are planning for recruiting cryptocurrency investment and operational experts. As per the source, existing partners at GoldenTree are experienced in trading crypto and making VC-style investments in blockchain companies.

In April, GoldenTree updated its SEC filings to allow the acquisition and trading of a broad mix of cryptocurrencies and to make investments in blockchain-focused applications. GoldenTree has the authority to use its limited-partner money in decentralized finance (DeFi), protocol tokens and other “distributed ledger” technologies. As per the report, to analyze the risks associated with investing in crypto, GoldenTree wrote ‘While cryptocurrency generally is not currently regulated as a currency, security, or similar asset/instrument in the United States, it has attracted the attention of U.S. regulatory agencies, and future regulation is likely,”. 

This month in a funding round for Borderless Capital, executives at the firm, including founder Steven Tananbaum and partners Deeb Salem and Joseph Naggar made an investment. Borderless also participated in a funding round for the Coinbase-backed digital asset securities firm Securitize.

Other fund management firms making investments in the crypto world

Other fund management firms are also investing in the crypto space either through direct investments or by offering investment vehicles for Bitcoin and other tokens. Last week, a prospectus was filed by Stone Ridge Asset Management with the U.S. Securities and Exchange Commission to add BTC to its open-end mutual fund. On Wednesday, to save from currency debasement, Contrarian investment firm Horizon Kinetics is planning to invest in crypto assets.

Other significant asset managers either investing in or planning to get into the crypto space include Bain Capital, Balyasny Asset Management, Boothbay Fund Management, Millennium Management, Point72 Asset Management, and Soros Fund Management.

Indrani Bose

CBW - External Analyst

INDIA