One of the World’s Largest Hedge Funds Considering Trading Bitcoin Futures

Michael LaVere
  • $75 billion hedge fund Renaissance Technologies is now offering funds eligible for investing in bitcoin futures.
  • The firm will limit its bitcoin trading to the institutional exchange CME. 

One of the world’s largest hedge funds is interested in entering the market for bitcoin futures. 

According to a report by the Block, Renaissance Technologies, a hedge fund with $75 billion in assets, filed a regulatory form last month indicating an interest in bitcoin futures. 

The hedge fund, which paved the way for quantitative-based investing, said its Medallion Funds are now “permitted” to participate in bitcoin futures transactions. The firm intends to limit its bitcoin trading to contracts on the institutional exchange CME. 

The ADV Form outlines the hedge funds business practices and explains the risk of bitcoin futures to potential clients. 

The form reads, 

Bitcoin and futures based on bitcoin are extremely volatile, and investment results may vary substantially over time. These instruments involve substantially more risk and potential for loss relative to more conventional financial instruments.

According to a report by The Wall Street Journal on Friday, Renaissance’s chief Medallion Fund was up 24 percent year-to-date despite ongoing global market volatility. The $10 billion fund saw an increase of 9.9 percent in March, compared to the S&P 500 which fell more than 12 percent last month. 

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