Renaissance Technologies, one of the largest hedge funds in the world, is interested in the opportunities of the Bitcoin futures market, writes The Block with a link to the company’s reporting.
The $ 75 billion hedge fund said in a March 30 document that its Medallion Fund “has been cleared to enter into Bitcoin futures transactions.” According to the company, its activity in this direction will be limited to trading contracts of the Chicago Mercantile Exchange (CME).
The document, aimed at informing investors about the company’s business practices, highlights the risks bitcoin trading and financial instruments based on it.
“The underlying commodity of these futures transactions, Bitcoin, is a relatively new and highly speculative asset. Bitcoin and its underlying futures are extremely volatile and investment results can vary significantly over time. Such instruments carry significantly higher risks and potential losses than traditional financial instruments. Investments of this kind should be considered significantly more speculative and more likely to result in a complete loss of capital than many other investments, ”writes Renaissance Technologies.
The Medallion Fund made headlines on Friday with its strong performance. With $ 10 billion under management, the fund posted a 24% return YTD, despite increased market volatility during that period. In March, the fund brought investors 9.9% profit.
What is the impact on bitcoin price will have Renaissance Technologies joining cryptocurrency trading is unclear as the fund can take both long and short positions. As The Wall street journal, a firm may hold thousands of shares at any time, but at the same time makes thousands of bets against individual assets on financial markets.
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