According to a filing, the seemingly highly lucrative Medallion Funds can target CME Group’s cash-settled Bitcoin futures. A secretive yet allegedly highly lucrative hedge fund now has the green light to invest in futures markets for Bitcoin (BTC).
In a brochure originally dated March 30 the Securities and Exchange Commission (SEC) of the United States regulator confirmed that Medallion Funds of Renaissance Technologies now have access to the burgeoning Bitcoin futures scene.
Medallion Funds Gets BTC Futures Go-Ahead
According to the literature, Renaissance will offer CME Group, one of the two oldest-running Bitcoin futures providers, access to cash-settled contracts.
“The Medallion Funds are permitted to enter into bitcoin futures transactions, which Renaissance will limit to cash-settled futures contracts traded on the CME,” it states.
The $10 billion Renaissance hedge fund has recently gained prominence in the press, gaining 24 per cent year to date despite the tumultuous volatility plaguing traditional markets over coronavirus.
The month of March, which even saw Bitcoin plunge 60 percent in just one day, still managed to deliver 9.9 percent returns for the fund, according to investors speaking to the Wall Street Journal on Friday.
Futures Resurgence Continues
At the same time, after suffering reduced participation in previous weeks, Bitcoin futures have been witnessing a return to form.
According to the latest data from CME, last month its products reached all-time highs in terms of single accounts, a combined annual growth rate of 161 percent.
Nonetheless, reactions to the announcement of the Medallion Funds highlighted continued distrust among Bitcoin supporters among institutional investors. Last year suspicions focused on futures contract settlements artificially pressuring the price of Bitcoin.
Others, like the stock-to-flow creator PlanB, have publicly disproved the idea that futures are responsible for manipulating prices.
Cryptolydian reported earlier that, The U.S. Securities and Exchange Commission (SEC) is extending the deadline for considering the proposal of BOX Options Exchange to roll out its security token platform Boston Security Token Exchange (BSTX), according to Coindesk website.
In a letter published yesterday, the SEC said it seeks feedback on the proposed BSTX; a JV between BOX Digital and tZERO.