Cryptocurrency News

NYDIG Raises $150 Mln For Its Two New Funds To Invest In Crypto Assets.

NYDIG [New York Digital Investments Group] has successfully raised $150 Mln for 2 new funds to invest in crypto assets, a move that underscores the one-stop crypto shop’s skyrocketing clout on the institutional Bitcoin [BTC] scene.

As revealed within two United States SEC [Securities and Exchange Commission] filings, NYDIG Digital Assets Fund I raised $50 Mln from institutional investors while NYDIG Digital Assets Fund II raised $100 Mln.

A source known to the matter confirmed that Fund I invests entirely in bitcoin [BTC, -1.71%]. The source added that it’s NYDIG’s latest offering for a growing lineup of institutional clients going long on BTC.

It was not immediately clear whether Fund II also invests solely within the market-leading cryptocurrency.

But more intriguing than the size of the 2 new NYDIG offerings are the identity of the whales that just bought in. Just two anonymous investors appear to have participated in NYDIG’s $50 Mln bitcoin fund, while it seems its larger brother got all its cash from only one.

The funds capture the extent to which deep-pocketed players are powering the 2020 bullish run. Firms making the cryptocurrencies as their treasury reserve, storied investors pumping their bags on CNBC, and institutions piling in have combined to push Bitcoin to new all-time highs.

Those crypto-forward institutional investors who would flock to NYDIG should be no surprise to those known within the space. NYDIG was spun out of $10 Bln Stone Ridge Asset Management in 2017 with a mission to court institutional cryptocurrency newcomers. It quickly hired BitLicense architect Benjamin Lawsky and secured $50 Mln in funding to create the team.

Additionally, NYDIG raised $50 Mln in growth equity earlier in the month of October. It presently offers custody, execution, investment, and prime brokerage services to hedge funds, pensions, banks, and other high-dollar clients.

The two funds continue NYDIG’s recent trend of registering its cryptocurrency offerings as Rule 506(c) investment vehicles. Essentially, meaning NYDIG can advertise the funds to a wider audience.

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