$10 billion fund is set to trade in CME’s bitcoin futures
Renaissance Technologies, a world-renowned investment fund, has just announced that it will introduce Bitcoin futures contracts business on the Chicago Mercantile Exchange (CME).
Renaissance Technologies’ leading Medallion Fund returns 24% annually, breaking the institutional capital. Medallion, the world’s largest fund, has been approved for bitcoin futures trading on the Chicago Mercantile Exchange (CME).
Jim Symons, founder of Renaissance Technologies, is considered one of the best sellers of his time. Between 1988 and 2018, the Medallion Fund, which invests an average of 66.1% per annum for investors, received a renewal.
During the same period, the S&P 500, the US economic instrument, gained 11.66% during the same period. The Simon Fund estimates approximately $ 10 billion in assets during the news period.
On page 16 of the brochure filed with the SEC on March 30, the Medallion Fund created a list of the future of Bitcoin as a trading vehicle. Bitcoin futures are reportedly being sold on the CME company’s platform.
In the filing, Medallion highlights the risky Bitcoin investment profile, saying, “These types of investments should be treated like hockey too much and can lead to a total loss of income than most other investment products.” In addition, the Company has identified 11 other risks related to regulatory uncertainty and possible fraud.
CME has been the liquid trading platform for bitcoin since its launch in 2017. This is because most of the BTC volumes are available on platforms like Bitmex and Binance with reasonable stop requirements. Choosing a CME affects Medallion’s ability to effectively trade Bitcoin, causing them to take up very small positions. For example, Medallion’s size of 1% opens the future of 50% of bitcoin CBE in writing.
The good news is that Medallion is entering into a bid bid in the crypto industry. This shows interest in BTC from major financial products. Ray Dalio of the hedge fund Bridgewater Associates has expressed his dismay at bitcoin. Dalio notes that Genesis Cryptocurrency is not a good alternative to investing because it is not a medium-sized exchange or a reliable value proposition.
While the industry is already financially strong in the form of Panthera Capital and others, the influx of prominent players like Delio and Symons has made bitcoin’s reputation and legacy traders a huge asset.