- Bitcoin miner Bixin puts up USD 66 million in Bitcoin for a new “fund of funds”
- Veteran macro investor Paul Tudor says Bitcoin is best bet against inflation
Bitcoin continues in a stable range after a fantastic performance on Thursday and Friday as only three days remain to the halving event. But as miners, traders, speculators and investors all await, there really is not much to do other than to see if expectations of further rallies are met.
Regardless of the outlook, some stakeholders in the crypto industry continue to put money where their mouth is. One example now is Bixin, who is one of the earliest Bitcoin miner operators and wallet startups, who has announced a 6600 Bitcoin stash to creaste a new “fund of funds” — currently worth about USD 66 million.
This new fund of funds was announced its proprietary capital and will be used to invest in global quantitative trading funds, using strategies that will include trend analysis, Bitcoin futures contracts, and arbitrage. This hopes to tend provide more liquidity and market making alternatives to the various trading desks and is a stamp of confidence from Bixin as part of its self-professed “unwavering commitment to Bitcoin. The company’s representative, Liu Fei, stated in its announcement:
“We are strong believers in bitcoin and it’s not what we want to see that the bitcoin ecosystem in China and elsewhere are in a silo. We hope the fund of funds can contribute to a better global liquidity structure for the bitcoin ecosystem.”
Bixin began life as a mining pool founded in 2014 by Wu Gang — himself a miner since 2009 — and has since grown to become one of China’s most well-known Bitcoin wallet and mining pool operator. But while most other crypto companies scaled down or cut operations during the so-called crypto winter of late 2018 and early 2019, Bixin went about scaling up. Today, it runs Bitcoin mining facilities with an output of about 300 megawatt-hour, putting out some 3,000 petahashes per second (PH/s) of computing power that makes up about 2.5% of the total hashpower securing the Bitcoin network.
An investment and financial service arm was established two years ago using its own capital. One of its investments in Chinese crypto startups includes MicroBT, who now count themselves as a challenger to Bitmain’s long years of dominance in the mining industry.
And it isn’t just crypto people who are apparently bullish on the world’s most popular cryptocurrency, as even traditional investors are now being won over. One such example is Paul Tudor Jones, considered to be a pioneer of the modern hedge fund industry, who is now all in on Bitcoin price as a hedge against inflation.
Reports say that an investor letter this month confirms that Jones’s Tudor BVI Global Fund, managed by Tudor Investment Corp, has the authority to hold “a low single-digit percentage exposure percentage” of its assets in futures of the digital asset. The fund manages USD 38 billion, of which the flaship BVI fund holds USD 22 billion, as reported by Bloomberg News. Jones says:
“The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”
It is as yet unclear whether or not the fund has indeed put up some money into Bitcoin futures, or what kind it would be — CME’s cash-settled contracts or Bakkt’s physically-settled Bitcoin, for example — and there is no indication at all to say if this will indeed happen.
But the wording from Jones is clear enough and should prompt even more investors to go into Bitcoin, not least becase of his fame in identifying profitable ventures. He correctly called the 1987 crash, then also the Japanese equities market years later, making his money every time he hedges economic downturn.
This time, he says Bitcoin will be the edge against what he calls “the Great Monetary Inflation”. He explained:
“It has happened globally with such speed that even a market veteran like myself was left speechless. We are witnessing the Great Monetary Inflation — an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”
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