Institutional investors still see a future for Bitcoin and cryptocurrencies despite the epic collapse of FTX and Alameda Research.
London-based investment manager Man Group Plc is preparing to launch a cryptocurrency hedge fund, signaling continued investor appetite for digital assets in the wake of FTX’s monumental collapse earlier this month.
Bloomberg reported on Nov. 18 that Man Group is preparing to launch its crypto-focused hedge fund through its computer-led trading unit AHL. Citing private sources, Bloomberg disclosed that the new hedge fund could be ready by the end of the year.
A spokesperson for Man Group declined to comment on the matter when asked by Cointelegraph.
Man Group already has exposure to digital assets through AHL, which actively trades crypto futures. By the end of September, Man Group had $138.4 billion in assets under management, down slightly from $142.3 billion during the previous quarter.
The company trades publicly on the London Stock Exchange and is a component of the FTSE 250.
Institutional appetite for digital assets like Bitcoin (BTC) has grown over the past two years, driven partly by the recognition that crypto represents a new investment class. However, broad institutional exposure to crypto has been hindered by a lack of clear regulations and the perception that fiduciary standards prevent fund managers from openly advocating for the sector.
Related: Amid FTX collapse, crypto funds see largest inflows in 14 weeks
Crypto’s push for mass adoption may have been hindered by the recent collapse of FTX and the firm’s subsequent Chapter 11 filing. Some believe that FTX’s failure will put more regulatory scrutiny on the industry at a time when investors were anticipating clearer and perhaps more favorable guidelines.