Traditional market participants are increasingly showing interest in the cryptocurrency market amidst a robust resurgence in Bitcoin (BTC) and the wider crypto market this year. Notably, M&G Plc., a pension giant based in London, has made a substantial investment of $20 million in a British crypto derivatives platform.
M&G Investments, the asset management division of M&G Plc, has committed $20 million to GFO-X, a UK-based crypto derivatives platform. This move indicates a positive shift in institutional confidence toward digital assets, particularly in the aftermath of the FTX collapse last year.
M&G Drives $30M Funding for GFO-X’s LCH Digital Asset Clear Project
M&G’s investment is a crucial component of a larger financial picture. It is part of a substantial $30 million series B funding round earmarked for GFO-X. Notably, M&G’s Crossover strategy played a significant role in this investment, acting on behalf of the £129 billion Prudential With-Profits Fund.
GFO-X had previously formed a strategic alliance with LCH SA. LCH SA is an entity majority-owned by the London Stock Exchange Group. The purpose of this collaboration was to introduce a service called LCH DigitalAssetClear by the end of 2023.
This service aims to clear Bitcoin index futures and options contracts traded on GFO-X. Despite facing some delays due to client demand, it is anticipated to become operational in the first quarter of 2024.
M&G’s Cryptocurrency Investment Indicates Market Revival
M&G’s investment in GFO-X is indicative of a potential reversal in institutional backing for cryptoasset infrastructure. In November 2022, the collapse of FTX had significant repercussions. This event led traditional asset managers to take action.
Notably, entities such as Ontario Teachers’ Pension Plan, Tiger Global Management, and Singapore’s Temasek Holdings responded by writing down their stakes to zero.
Traditional institutional players have been broadening their presence in the crypto space, and this trend is evident this year. Analysts have expectations for the expansion of traditional financial institutions’ exposure to the crypto market.
This anticipation is tied to the potential introduction of a spot Bitcoin ETF. The introduction of such an ETF could mark a significant development in their involvement with the cryptocurrency market. In addition to direct investments in crypto, major players and government institutions are actively seeking exposure to crypto firms.
National Pension Service Makes Historic Investment in Coinbase Stock
In the third quarter of 2023, South Korea’s largest investment group, the National Pension Service, made an investment in Coinbase (NASDAQ: COIN).
This marks the inaugural inclusion of a virtual asset-related company in the National Pension Service’s U.S. stock portfolio. According to the stock holdings report submitted to the U.S. Securities and Exchange Commission (SEC) on the 16th, there is notable information about the National Pension Service.
During the third quarter, the National Pension Service made a substantial investment in Coinbase stock. Specifically, they acquired 282,673 shares of Coinbase stock. The total value of this acquisition amounted to $19,934,100, which is approximately equivalent to 26.1 billion won.