crypto hedge funds

Europe enters in the crypto hedge funds arena with London based Man Group.

  • Man Group PLC is about to enter as a crypto hedge fund. 
  • Andre Ryan will be leading the plan.
  • They would be the first from Europe to join the bandwagon.

The world’s largest publicly traded hedge fund, London-based Man Group Plc, is about to enter the crypto space as a crypto hedge fund soon. They still see opportunities and growth despite the recent FTX debacle.

The collapse has shaken the crypto industry to its core, and this incident will bring tougher rules and stricter scrutiny at a time when people were expecting leniency. 

In a Bloomberg report of November 18, some people from the company who wished to be unnamed said, “The firm’s computer-led training unit AHL is planning to start the fund as soon as the end of the year.”

Man group trades publicly on the London Stock Exchange and is a component of FTSE 250; they have also traded in crypto futures. Are they still accessing the counterparty risks involved, and are the crypto strategies scalable? And among all these assessments, if the company launches its hedge fund, it will be the first to do so.

Author of the paper “to provide balanced and practical insights for institutional investors seeking exposure to cryptocurrencies.” Andre Ryan will be leading the London-based companies plan. He had previously traded in Aurich Capital Market and is now in charge of alternative markets at the company.

There have been many hedge funds in the crypto space from the US, like; Pantera Capitals, Morgan Creek, Brevan Howard, etc., and Man Group can be the first one from Europe. If they enter the market, they shall be the ones amongst trading at very high volatility of crypto space. 

But as experience suggests, High reward comes with High risks, and as they would be hedge funds, they will extract profit irrespective of the market going up or down. But this profit will put the London-based company at very high risk. Recently in a similar case, Three Arrows Capital went bankrupt amidst the TerraLuna fallout. 

That’s why only a small portion of the company’s assets will go into this hedge fund so that even if there are losses, they shall be minimal. The group already has exposure to digital assets through AHL, the subsidiary that has actively been trading in crypto. 

Lately, there was a slight loss in Q3 revenue; in Q2, they reported $142.3 billion, while it was reduced to $138.4 billion in Q4. It is unclear whether the company’s decision to enter the crypto space is due to this slight loss or something that they had been planning for a very long time. Nonetheless, the industry needs more and more people to be a part of the ecosystem.  



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