Alan Howard’s hedge fund is planning to invest in crypto. The fund, founded last year, will attempt to bring big players into the market. Its founder hopes that people who were not sure about entering into the crypto industry will use this platform to get in.
Bitcoin ETF Launched in London
Elwood also deals with the blockchain tech and other digital assets. It is a private limited company, registered in the United Kingdom. On Monday, March 11th, Elwood joined forces with Invesco, another London-based company, to launch a Bitcoin exchange-traded fund or ETF.
The two companies have listed the ETF on the London Stock Exchange. Their product is listed as “Invesco Elwood Global Blockchain UCTIS ETF.” These fund targets companies which seek to get returns from the blockchain tech. These companies are known as “institutional investors.”
Lack of Trust
Elwood’s CEO, Bin Ren, told Bloomberg News that investors are shying away from crypto. In his view, there are three significant barriers to entry. First, there is uncertainty about regulation in the industry. Secondly, big players have concerns about money laundering. Finally, market manipulation is real in the sector.
Mr. Ren said that Elwood addresses these fears. According to him,
…The only way for institutions to get meaningful exposure to digital assets has been to buy Bitcoin, but many are reluctant or unable to buy Bitcoin — and for a good reason,’
An ETF gives a highly liquid and regulated way to gain exposure. This is the right point to start…
He added that blockchain and crypto are underrated today. He likened the current attitude to how people did not appreciate the usefulness of email during the early years of the internet. However, he believes that there is a big global potential, worth billions of dollars, in the tech.
Institutions Can now Buy Bitcoin
Before ETFs, institutional investors kept away from cryptos like Bitcoin. However, they can now stake their money in crypto funds like Elwood’s. ETFs offer a regulated way to take part in the market.
This unique asset class started a decade ago, with the advent of Bitcoin. The market is now worth over $130 billion. It is no longer a preserve of retail investors. Institutional players like Yale University and a couple of pension funds in Fairfax County are already investing.
Do you think Bitcoin and cryptocurrency prices will now rise since a Bitcoin ETF is in the market? Let us know in the comments section below!