https://www.wsj.com/articles/big-hedge-funds-want-in-on-bitcoin-1513765802
WSJ - Big Hedge Funds Want In on Bitcoin
Big Hedge Funds Want In on Bitcoin
Such investors are looking to profit either by buying bitcoin and other virtual currencies or by betting against them
By Gregory Zuckerman
Dec. 20, 2017 5:30 a.m. ET
Some of Wall Street’s largest players are gearing up for bitcoin.
Until recently, big-name hedge funds paid little attention to the digital currency. But the rollout of futures trading and soaring prices have some large firms considering whether it is time to wade into the market.
The funds are looking to profit either by buying bitcoin and other cryptocurrencies or by betting against them. Their entry could provide a new jolt to bitcoin’s already volatile trading.
Just over a month ago, executives of firms including Quantbot Technologies, which trades over $3 billion for Steven Schonfeld’s Schonfeld Strategic Advisors, and Steven Cohen’s Cubist Systematic Strategies, met for lunch to discuss ways to profit from trading cryptocurrencies, according to people close to the matter.
Now, Quantbot and others say they are working to understand how they might be able to profit from bitcoin. “It’s gotten more interesting and the barrier to entry has fallen” now that bitcoin futures are available, said Michael Botlo, Quantbot’s co-founder. “We’re not planning anything near-term but once we get in, it will probably be quick.” (... )
Other big name funds, such as Ellington Management Group, which manages $6.5 billion and has focused on debt investments, are examining trading cryptocurrencies but haven’t yet made the decision to jump in, according to people familiar with the matter.
“Cryptocurrencies can protect against high inflation and capital controls…And they may prove themselves as safe-havens in the next crisis,” argued Rasheed Sabar, Ellington’s head of systematic strategies in a recent white paper circulated to the firm’s investors. “We can think of them as an insurance policy against low-trust states of the world…At the same time, they may have gone up too far too fast.” (... )
Others investors say they will wait until liquidity for bitcoin futures is sufficient for serious trading.
Cantab Capital, a Cambridge, England-based quant firm managing $4 billion, has been studying bitcoin trading and blockchain technology for more than a year. But Ewan Kirk, the firm’s founder, said Cantab will remain on the sidelines until enough volume emerges in futures trading so Cantab can get in and out of a position with ease. He would like to see other trading anomalies disappear, as well. (... )
WSJ - Big Hedge Funds Want In on Bitcoin
Big Hedge Funds Want In on Bitcoin
Such investors are looking to profit either by buying bitcoin and other virtual currencies or by betting against them
By Gregory Zuckerman
Dec. 20, 2017 5:30 a.m. ET
Some of Wall Street’s largest players are gearing up for bitcoin.
Until recently, big-name hedge funds paid little attention to the digital currency. But the rollout of futures trading and soaring prices have some large firms considering whether it is time to wade into the market.
The funds are looking to profit either by buying bitcoin and other cryptocurrencies or by betting against them. Their entry could provide a new jolt to bitcoin’s already volatile trading.
Just over a month ago, executives of firms including Quantbot Technologies, which trades over $3 billion for Steven Schonfeld’s Schonfeld Strategic Advisors, and Steven Cohen’s Cubist Systematic Strategies, met for lunch to discuss ways to profit from trading cryptocurrencies, according to people close to the matter.
Now, Quantbot and others say they are working to understand how they might be able to profit from bitcoin. “It’s gotten more interesting and the barrier to entry has fallen” now that bitcoin futures are available, said Michael Botlo, Quantbot’s co-founder. “We’re not planning anything near-term but once we get in, it will probably be quick.” (... )
Other big name funds, such as Ellington Management Group, which manages $6.5 billion and has focused on debt investments, are examining trading cryptocurrencies but haven’t yet made the decision to jump in, according to people familiar with the matter.
“Cryptocurrencies can protect against high inflation and capital controls…And they may prove themselves as safe-havens in the next crisis,” argued Rasheed Sabar, Ellington’s head of systematic strategies in a recent white paper circulated to the firm’s investors. “We can think of them as an insurance policy against low-trust states of the world…At the same time, they may have gone up too far too fast.” (... )
Others investors say they will wait until liquidity for bitcoin futures is sufficient for serious trading.
Cantab Capital, a Cambridge, England-based quant firm managing $4 billion, has been studying bitcoin trading and blockchain technology for more than a year. But Ewan Kirk, the firm’s founder, said Cantab will remain on the sidelines until enough volume emerges in futures trading so Cantab can get in and out of a position with ease. He would like to see other trading anomalies disappear, as well. (... )
