US SEC Permits $10B Hedge Fund to Provide Entry to CME Bitcoin Futures

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US SEC Permits $10B Hedge Fund to Provide Entry to CME Bitcoin Futures

A secretive but reportedly extremely profitable hedge fund now has the inexperienced gentle to put money into Bitcoin (BTC) futures markets. In a b


A secretive but reportedly extremely profitable hedge fund now has the inexperienced gentle to put money into Bitcoin (BTC) futures markets. 

In a brochure initially dated March 30, america regulator the Securities and Trade Fee (SEC) confirmed that Renaissance Applied sciences’ Medallion Funds now have entry to the burgeoning Bitcoin futures scene.

Medallion Funds will get BTC futures go-ahead

In line with the literature, Renaissance will provide entry to cash-settled contracts from CME Group, one of many two oldest-running Bitcoin futures suppliers.

“The Medallion Funds are permitted to enter into bitcoin futures transactions, which Renaissance will restrict to cash-settled futures contracts traded on the CME,” it states.

Renaissance’s $10 billion hedge fund lately gained notoriety within the press, having gained 24% 12 months up to now regardless of the tumultuous volatility plaguing conventional markets over coronavirus.

In line with traders talking to the Wall Avenue Journal on Friday, the month of March, which even noticed Bitcoin plunge 60% in simply at some point, nonetheless managed to ship 9.9% returns for the fund.

Futures resurgence continues

On the similar time, Bitcoin futures have been witnessing a return to kind after struggling decreased participation in earlier weeks. 

In line with the most recent data from CME, its merchandise reached all-time highs by way of distinctive accounts final month, a mixed annual development fee of 161%.

CME Bitcoin futures accounts

CME Bitcoin futures accounts. Supply: Hunter Horsley/ Twitter

Nonetheless, reactions to the Medallion Funds announcement underscored continued mistrust of institutional traders amongst Bitcoin supporters. As Cointelegraph reported, suspicions final 12 months targeted on futures contract settlements artificially pressuring the Bitcoin worth. 

Others, akin to stock-to-flow creator PlanB, have publicly refuted the concept that futures are answerable for worth manipulation.





cointelegraph.com