$10bln Medallion Fund to Facilitate Clients to Access CME Bitcoin Futures
The US Securities and Exchange Commission (SEC) has approved Renaissance Technologies’ Medallion Funds to invest in Bitcoin (BTC) futures markets.
The Fund’s brochure dated March 30 confirms the news. With this approval, Medallion Funds will be able to gain exposure to appreciation in Bitcoin price.
As per the brochure, Renaissance will provide access to cash-settled contracts from CME Group, one of the leaders in Bitcoin futures arena.
The brochure states:
“The Medallion Funds are permitted to enter into bitcoin futures transactions, which Renaissance will limit to cash-settled futures contracts traded on the CME.”
Of late, Renaissance’s $10 billion hedge fund hogged the limelight, after appreciating 24% year-to-date in spite of extreme volatility affecting conventional markets due to Covid-19 pandemic.
Notably, even last month, when Bitcoin plummeted 60% in a single day, the Fund successfully delivered 9.9% returns.
Bitcoin Futures on @CMEGroup YTD:
– ADV 9,427 contracts, ~$395MM
– ~116% up year/year
– Over 4,200 accounts set up
Continues to move in the right direction — pic.twitter.com/RTOgjl1fdC
— Hunter Horsley (@HHorsley) April 17, 2020
During the same period, Bitcoin futures volume has been rising after recording poor participation in the earlier weeks.
As per the latest data from CME, last month, the institution’s product offerings recorded new highs in terms of new distinct accounts, reflecting a yearly growth of 161%.
Nevertheless, crypto market is not buoyed by the announcement of Medallion Funds as Bitcoin advocates seem to lack trust on institutional investors.
Many believe that futures contract yield considerable influence on the price of Bitcoin. However, such an argument has been brushed away as baseless by stock-to-flow creator PlanB.