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Hedge fund giant Renaissance Technologies to enter the Bitcoin futures market?

  • One of the largest hedge funds in the world, Renaissance Technologies, is eyeing the Bitcoin futures market.
  • The company manages $166,000,000,000 in regulatory assets.
  • Renaissance noted that it would limit its trading activities to contracts traded on the Chicago Mercantile Exchange.

Renaissance Technologies, the firm that manages around $166 billion in regulatory assets, will soon be venturing into Bitcoin futures. In a recent filing with the US Securities and Exchange Commission (SEC), the company revealed that it has green-lighted its $10-billion flagship Medallion fund to enter the Bitcoin futures market.

Renaissance Technologies acknowledged the risks associated with Bitcoin investments and described the leading crypto as a relatively new and speculative asset. This was stated due to the asset’s limited history, decentralized system, lack of recognition as a legal tender and its potential to power fraudulent transactions.

Investment results may vary substantially over time. These instruments involve substantially more risk and potential for loss relative to more conventional financial instruments.

Investments of this type should be considered substantially more speculative and significantly more likely to result in a total loss of capital than many other investments.

Renaissance Technologies noted that it is limiting crypto trading activities to Bitcoin futures contracts on the Chicago Mercantile Exchange (CME). Bitcoin futures on the CME are cash-settled and do not involve the actual exchange of BTC. 


 

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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