Again and again we hear the Call to the big money. It is all about the money, the so-called institutional investors: investment companies, insurance companies, pension funds or hedge funds. For the Bitcoin price, this could be very positive as institutional investors in comparison to private investors with significantly larger amounts of money in the market. This, of course, increase the demand on the condition that you actually buy a physical Bitcoin.A 166 billion US-Dollar hedge Fund rises in the BTC business. Whether such a positive effect for us now and what a heavy weight it is, you can find out in this article.
166 billion Dollar hedge Fund, Bitcoin stage
Let’s start with the answer to the question: To whom is it, anyway? – Specifically, it’s the US-American investment company Renaissance Technologies. This is a company that manages a total of 166 billion dollars. Even more serious is the fact that the company operates one of the most profitable hedge Fund in the world, however: the Medallion Fund.This hedge Fund holds the record the best Performance over the years 1988 to 2018 with an average annual Profit of 66%, before costs. The founder of the company, a mathematician by the name of James Simons, has been referred to several times already as the best assets of Walter in the world. In order to emphasize the quality and class of this company and of the Fund, I would like to call a number before we get back to the topic Bitcoin.The Medallion Fund has, in spite of the corona crisis and market turbulence this year, with a Performance of +24 percent. Alone in March, the Fund rose by 9.9%.
Renaissance Technologies is ready for Bitcoin Futures
It is in the company Renaissance Technologies, a giant in the field of financial and wealth management, it should be clear by now. From a request from the 30.03.2020 in the American financial regulator, the SEC, stating that the investment company wants to enter the world of Bitcoin.More specifically, the trading of Bitcoin Futures on the American Future platform CME. On this so-called cash-settled Futures can be. Here, it is explicitly not Futures, which are actually covered in a physical Bitcoin.Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!
Classification as a speculative Asset
Interesting is the fact that Renaissance Technologies, Bitcoin classified as speculative and risky the Asset is. The King’s Coin is classified due to its age, its Innovation in the Form of a decentralized system, as well as the often negative case law as a ‘relatively new and speculative Asset’. On the topic of risk and speculation it is:
The investment results may vary over time significantly. These instruments (=Bitcoin Futures) are significant high-risk and greater loss potential than traditional financial instruments.
The consequence of this could be a total loss. So Renaissance Technologies says:
Investments of this type should be considered extremely speculative. You have a significantly higher risk of total loss than many other Investments.
At this point, one must say, however, that the classification as a risky Asset, a more or less compulsory affair for the company, and approval. On the other hand, it obviously shows that the hedge Fund sees great opportunities in the Trading of Bitcoin Futures.As I mentioned above, will participate in the hedge Fund exclusively on Bitcoin Futures at the Chicago Mercantile Exchange (CME) trade with BTC. The result is, therefore, no direct increase in the demand for Bitcoin. However, the Bitcoin price affect Futures Bitcoin. The keyword here is the so-called Future Gaps are.
Bitcoin Futures: betting on rising or falling exchange rates and prices
Hold on, we can at this point so: one of the most successful hedge funds in the world decide on the Bitcoin trade. This obviously shows that the return opportunities are, in spite of (or because of) the risks are extremely high.The volatility of Bitcoin may be classic investors probably a thorn in the eye; for a Trader, volatility is a blessing. With the help of Futures Long and Short positions can be taken, so that both rising as well as falling prices can be set. This makes it possible to use in each market situation and opportunities to realize profits.
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