Hedge Fund Firm Marshall Wace Intends to Enter the Crypto Market

According to the Financial Times, Marshall Wace, a UK hedge fund business with over $55 billion in assets under management, intends to enter the cryptocurrency market.

UK Hedge Fund Intends To Enter The Crypto Markert

According to the Financial Times, individuals close to the firm have stated that the UK organization intends to invest in blockchain technology, digital currency payment systems, and stablecoins.

Amit Rajpal, the hedge fund’s top executive for Asia operations, will lead the new Marshall Wace venture. However, specifics regarding the upcoming launch, such as the size of the new portfolio, remain unknown.

Marshall Wace also took part in a $440 million financing round for Circle, the US-based business behind USD Coin, in May.

Hedge Funds Are Pouring Money Into Cryptocurrency

Marshall Wace is the latest in a long line of hedge funds to embrace the crypto sector.

SkyBridge Capital, led by former White House communications director Anthony Scaramucci, purchased $25 million in Bitcoin in December of last year.

Brevan Howard Asset Management is another hedge fund that has previously invested in cryptocurrency. The Jersey-based business said in April that it will invest 1.5 percent of its $5.6 billion hedge fund in cryptocurrency.

Their investments are part of a larger trend in the hedge fund industry toward cryptocurrency. By May, half of all hedge funds were investing in the crypto business, according to PricewaterhouseCoopers. 

A month later, management company Intertrust Group reported that hedge funds want to invest over 7% of their entire assets in cryptocurrencies over the next five years.

The Rising Institutional Interest In Cryptocurrency

Institutional investors aren’t the only ones interested in cryptocurrencies. When Bitcoin led the way in crypto’s infamous 2017 Christmas bull run, individual investors provided most of the industry’s impetus.

By 2020, institutional investors have taken notice of the sector. MicroStrategy, a software business, made a $425 million investment in Bitcoin in August and September. Michael Saylor, the firm’s CEO, has subsequently become one of Bitcoin’s most outspoken supporters.

Other big financial firms have joined the crypto train since MicroStrategy’s investment. Payment companies such as Square, run by Jack Dorsey, JPMorgan Chase, and Morgan Stanley are among them.