As interest in cryptocurrencies and related technologies continues to boom, institutional asset managers are entering the market at a pace never seen before. London-based hedge fund Marshall Wace is the latest rumored to be planning a new fund dedicated to investing in the cryptocurrency space.
Marshall Wace, which manages up to $55 billion worth of assets, will reportedly focus its investments in blockchain technology and stablecoins, as well as payment systems supporting digital currencies like Bitcoin.
“The group is launching a portfolio that will scoop up stakes in privately owned digital finance companies that are at a late stage in their development,” sources for British media firm the Financial Times said.
The crypto fund investment will be a follow-up to Marshall Wace’s earlier launch of a fund to invest in healthcare companies before flotation and then hold on to them after they go public. This move as well as that of investing in the crypto space is part of the firm’s plans to tap new sources of return in private markets.
The firm has reportedly been recently looking to hire staff familiar with the digital assets sector. While the new business is still at an early stage, Marshall Wace plans to increase its services by including other forms of investments as well, for instance, buying and selling Cryptocurrencies, hence the need for more staff.
Marshall Wace’s crypto invasion comes at a time of quick expansion for the industry, with an increasing number of traditional financial institutions such as fund managing companies, banks, and advisory firms, building on digital asset businesses.
Barely a month ago, independent investment management firm Victory Capital also announced its intention to journey into the crypto world by launching three different private funds. Andreessen Horowitz is another venture capital firm that recently launched a $2.2 billion fund targeting the crypto space.
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