Big Name In The Financial World: Bitcoin Should Be $ 400,000
One River Asset Management bought Bitcoin (BTC) for $ 600 million in November and plans to increase its cryptocurrency portfolio to $ 1 billion.
Large corporate investment in bitcoin continues to occur frequently, with the most recent coming from US-based hedge fund One River Asset Management. After forming a new company focused on digital asset investments, the fund bought BTC for $ 600 million and plans to add ETH in the next few months and increase its assets to $ 1 billion.
Corporate firms ‘ interest in bitcoin has been huge in the last few months. The latest of the firms joining the” Buy BTC ” caravan is Connecticut-based hedge fund One River Asset Management, which specialises in volatility betting. Eric Peters, the fund’s chief executive, announced that his company is setting up a new venture called One River Digital Asset Management, which specialises in cryptocurrency investments.
The Hedge fund bought $ 600 million worth of Bitcoin through its newly formed arm. The company completed all transactions in November before BTC reached $ 16,000. Moreover, the organization plans to double its crypto investments by acquiring Ethereum and expanding its portfolio to about $ 1 billion by early 2021. Peters believes that” there will be a generational allocation to this asset class, ” and that they are just getting started.
The company’s Long Volatility Fund and dynamic convexity Fund enable it to use Ripple and trend-tracking strategies to generate profits, whether prices are rising or declining. The two funds rose by as much as 40% in 2020 alone.
Peters also highlighted the global economic situation in the wake of the Covid-19 epidemic, with negative interest rates, government fiscal spending and central bank debt as the main causes of high market fluctuations.
“COVID-19 provided the ultimate catalyst for this transition. This is the most interesting macro trade I’ve seen in my career.”
Assisted By Alan Howard
British billionaire high-risk mutual fund manager and Brevan Howard Asset Management Co-founder Alan Howard will also have a key role in the new venture. In addition to investing in funds for crypto assets, the company he oversees bought 25% of One River Asset Management in October.
In addition, another firm it controls, Elwood Asset Management, will provide trading services, Sunday analysis and technical support to One River’s digital arm.