In recent crypto news today, Man Group, the largest publicly traded investment company and asset manager in the world, revealed plans to launch a crypto hedge fund by the end of this year.
Man Group represents the largest public investment company with over $138.4 billion in estimated assets under management. The high profile stature of the well-known investment firm makes this significant news in both the TradFi as well as the blockchain and digital asset space.
Taking Time Under Development
According to the report published by Bloomberg, the firm has been developing the crypto-directed hedge fund for several months in preparation to roll the product out as soon as it’s considered ready. Development of the crypto hedge fund has been directed by Man AHL, the quantitative, systematic investment engine of Man Group.
Andre Rzym, a partner and portfolio manager with Man AHL, has been reportedly leading the effort for the past several months. According to his role, Rzym is responsible for identifying alternative markets for Man AHL, as well as developing pricing and systematic training models.
It is also encouraging to note that Andre Rzym has been trusted by Man Group in his role of discovering new and emerging markets and technologies since 2005 when he arrived after a reportedly high level of demonstrated proficiency as a trader for JP Morgan & Chase. The crypto hedge fund has reportedly taken time to develop, but the report suggests the goal of the Man Group is to have it complete, tested and released before 2023.
A Cause To Ensure Due Diligence In The Crypto Hedge Fund
The report also goes into the relationship of Man AHL and the Man Group. It has been reported that Man Group currently uses its Man AHL arm to invest in crypto derivatives. The Bloomberg publication also reports it had been made clear by representatives from Man Group that the firm will only launch the product post-evaluation of counterparty risks.
The decision to be thorough and take the time to make sure all risks are adequately assessed and considered, is one which comes at a time after monumental damages have recently struck the digital assets market. Prior to the chapter 11 bankruptcy filing of the crypto giant FTX over the last couple of weeks, the space had already endured other sizable financial catastrophes.
Terra Luna seemed to start a cascade, as the near-$60 billion dollar ecosystem collapse in early May of this year was the first in a string of collapses, crashes and bankruptcies from Three Arrows Capital to Celsisus, Voyager Capital and others, prior to FTX. The Man Group is yet another well-known name and entity in the financial space, as Blackrock and other institutions have actively moved into investing in the virtual currencies market.