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Crypto Fund Manager One River Digital Raises $41M from Goldman, Coinbase and Others

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The founder and chief executive at One River Digital said that it’s becoming more evident that asset management will be making a transition to the tokenized niche

Coinbase Global Inc and Goldman Sachs are on the list of some of the investors that One River Digital, a growing cryptocurrency startup, has attracted to raise $41 million in funding. The cryptocurrency fund manager and startup enjoys the full support of Alan Howard.

In a series A funding, where valuation for One River Digital was $186 million, Goldman Sachs and Coinbase Global Inc went on to acquire minority stakes. Other notable firms that participated were Liberty Mutual Group and Infinity Investment Partners, an insurer and a European family office respectively. A co-founder, Howard, at Breven Howard Asset Management was a major provider for the seed funding of One River Digital in 2020.

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The founder and chief executive at One River Digital, Eric Peters, was quoted in an interview saying that it’s becoming more evident that asset management will be making a transition to the tokenized niche. He noted that there was a big opportunity in that niche and the only question they needed to ask themselves is how they could capitalize on such a rare opportunity.

Currently, One River Digital is running two funds: one fund holds Bitcoin while the other fund is for Ethereum.

Recently, Eric Peters opened another fund- a third one- which has a wider mandate. The third fund was used to invest in a decentralized computing platform, Solana. The director is planning to roll out two more products, one being an Ethereum staking fund while the other being a cryptocurrency lender meant to earn dollars for investors.

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Greenwich, part of One River Digital based in Connecticut, is also developing a new product; an index that will be a digital asset of high quality and capable of matching institutional liquidity standards, decentralized function & ownership, while meeting security standards at the same time. In the crypto niche, most startups either focus on providing solutions for technical challenges, creating tokens or trading but for One River Digital, their main focus is asset management for institutional investors. Services range from endowments, pensions to sovereign wealth funds management.

Vlad Barbalat, an officer at Liberty Mutual Chief Investment was quoted saying that there are both opportunities and challenges presented by the digitization of global finance. He added that his company is excited to partner with One River Digital, a firm that brings deep institutional expertise on board. On the other hand, emails sent to Coinbase and Goldman Sachs remained unanswered, however.

About One River Digital

One River Digital, a firm known to bet on market volatility, was founded by Peters in 2020. The firm grew and went on to become a major Bitcoin and Ethereum investor.and as the value of both tokens surged, the valuation of One River Digital also grew exponentially. Currently, the firm’s three crypto funds approximately have $500 million. At the beginning of the year, One River Digital hired a former SEC chairman, Jay Clayton, to the company’s advisory board. Making investments in the startup position Goldman Sachs, Liberty Mutual and also Coinbase as distributors if not joint developers for One River’s products; crypto products. Peters said that all he’s currently interested in is winning and winning in the right way.

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Bitmart Says It Lost USD 150M In a Hack, Suspends Withdrawals

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One of the top 30 crypto exchanges, Bitmart, confirmed it has lost around USD 150m in a hack today, December 5, and has temporarily suspended withdrawals until further notice.

The company said they have identified “a large-scale security breach” related to one of their Ethereum (ETH) hot wallets and one of their Binance Smart Chain hot wallets.

“At this moment we are still concluding the possible methods used,” Bitmart said, adding that the affected wallets “carry a small percentage of assets on BitMart and all of our other wallets are secure and unharmed.”

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The exchange was established in 2017 and claims it has more than 9 million users. It listed Alexander Capital Ventures and Fenbushi Capital among its investors.

The 24-hour trading volume on Bitmart surpassed USD 1.4bn, per Coingecko data, which ranks the platform as the 25th largest exchange by daily trading volume.

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Fidelity to Launch Spot Bitcoin ETF This Week

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Fidelity is aiming to launch its first spot Bitcoin ETF

Fidelity, an American multinational financial services corporation, is set to launch its first spot Bitcoin ETF in Canada this week, according to Bloomberg senior ETF analysts.

ETF launch

Fidelity is a multinational financial services corporation that was established in 1946, and it remains one of the largest asset management companies in the world with $4.9 trillion AUM with a total AVN of $8.3 trillion.

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According to Bloomberg analysts, the fund with FBTC CN is currently pending listing on the Canadian exchange and will be trading under the name Fidelity Advantage Bitcoin. Balchunas also notes that the new fund might possibly become the biggest asset management company that includes Bitcoin products.

Spot ETF as main advantage

While futures-backed Bitcoin ETFs are not something new for the market, the physically-backed exchange-traded fund would actually be a more convenient solution for Canadian investors who are willing to receive exposure to the cryptocurrency market and Bitcoin specifically.

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Compared to futures-backed funds, physical settlement Bitcoin products allow investors to receive direct exposure to the cryptocurrency market without facing high roll costs. Since Bitcoin-tracking funds utilize short-term one-month futures, they have to renew their contracts every month, which puts investors in an unfavorable position.

Due to funds operating with large volumes, the futures market faces significant buying power that puts futures contracts prices higher than the actual underlying asset. Such a market condition is called contango bleed when investors have to overpay for opening new positions on the market, which puts them at around a 20% annual loss.

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Former PayPal CEO’s Cryptocurrency Exchange Goes Live for Institutional Clients

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“Bullish” exchange backed by PayPal co-founder is set to launch for institutional investors.

The cryptocurrency exchange backed by Peter Thiel and Richard Li began operating for a batch of institutional investors on Tuesday. The start for institutional investors is only the first step before the full launch for private investors and traders.

The Bullish Exchange will offer Bitcoin, Ether and EOS tokens for trading against USD coins. With further development and expansion in the future, the exchange will broaden its digital assets offering for both institutional and retail investors.

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Exchange founders

Among the exchange’s first clients are firms like Virtu Financial (non-U.S. affiliate) and Hong Kong-based crypto finance firm Amber Group. The first company is an electronic market-making firm that is based in New York.

The new exchange, which is also backed by hedge fund managers Alan Howard and Louis Bacon, was established earlier in 2021. The exchange has numerous distinctive features that come from the world of decentralized finance, including automated market making, lending tools and portfolio management mechanisms that will help traders to properly handle their funds.

The chairman of Bullish exchange presented his product like a tool designed for investors who are looking for secure and efficient exposure to the digital assets market on a platform that will ensure funds safety from both the technical and legal sides.

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The exchange will initially use its own assets to add more liquidity to pools that would be used by automated lending and market-making mechanisms. The backend of Bullish exchange is powered by EOSIO—open-source blockchain software developed by Block.one.

Plans for the future

Bullish exchange is planning to further broaden its offering by going public on the New York Stock Exchange by merging with SPAC company Far Peak Acquisition Crop. The transaction between the two companies will set the exchange’s value at approximately $9 billion.

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