Massive Hedge Fund CEO "Ready To Add Bitcoin To Investment Universe"

Tyler Durden's picture

Just yesterday we noted that billionaire hedge fund legend Mike Novogratz said "the institutionalization of [the crypto space] is coming... and it's coming quick."

Novogratz said he expects major financial firms will soon start to offer bitcoin or similar products as an investment option, one that could be easily purchased over the phone.

“When it’s that easy, the price of bitcoin or ethereum is going to go much higher. And that is a lot closer than people think,”

How right he was as the CEO of massive hedge fund Man Group just confirmed they will "add bitcoin to its investment universe" once CME launches Bitcoin futures.

As BI reports, one of the largest hedge funds in the world might hop on the bitcoin trade.

Luke Ellis, the CEO of Man Group, the UK-based investor with $95 billion in funds under management, said the firm would include bitcoin in its "investment universe" if bitcoin futures successfully launch, according to a tweet by Reuters.


CME announced at the end of October that it would launch a bitcoin futures product by year-end.


On Monday, CME chairman and CEO Terry Duffy said such a product would likely be ready by the second-week of December.

Additionally, as CoinTelegraph reports, earlier today on Nov. 14, Multicoin Capital Managing Partner Kyle Samani revealed that he had met with an institutional investor with a $30 bln fund. The investor disclosed the fact that fund managers within the company are restricted to issuing checks with the minimum value or $300 mln.

“More. Just met with an institutional manager. $30 bln fund. Minimum check size $300 mln. Current crypto allocation: $0. We aren't even close to the top,” said Samani.

Previously, even up until early 2017, it was not possible for institutional investors to allocate hundreds of millions of dollars in Bitcoin because the market was premature and the liquidity was limited.

In January of 2017, the market cap of Bitcoin was only $15 bln. The market was simply not deep and mature enough for institutional investors and large-scale hedge funds to commit.

In the past 10 months, the market valuation of Bitcoin has grown to $110 bln, with a daily trading volume of $4 bln. As such, Bitcoin has become more liquid than the most liquid stock on earth, Apple.

Finally, we note that Novogratz's biggest regret this year has been not buying more cryptocurrencies when prices fell, because he knew that they would keep going up. He sees bitcoin, for instance, hitting $10,000 by March.

The basis of the price target of Novogratz was established by several indicators including the Metcalfe’s law, a widely acknowledged metric which has been utilized to measure the growth rate of communication networks like Facebook, and the likelihood of the entrance of institutional investors and retail traders into the cryptocurrency market.

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wisehiney's picture

Less liquidity for stawks.

You bitcoiners had best beware.

FreeShitter's picture

I trade BTC, but I have a feeling the EASY good ole days of massive profit taking are coming to an end...

Mr_Potatohead's picture

That's true if you're trading from the long side, but it should get easier from the short side.  Isn't that what the futures are all about?

IH8OBAMA's picture

And another Hedge Fund bites the dust.


lickspitler's picture

At least when a Bitcoin article is now posted we don't have to endure 

the cavalcade of substitute names. Shitcoin, buttcoin, tulipcoin, crapcoin...........n.

It only took 3 1/2 years, a 100 bagger, a Fonestar, a Tmosley and a paralysed Gold price 

to finally get a little respect.

uno's picture

CIA coin (aka bitcoin) used to pay off arms smugglers, assassins, child kidnappers, drug smugglers, warloads, dems and rinos and whatever else fits their agenda.  Of course the plebians will be told that it is revolutionary and corrupt governments hate it but cannot do anything about it.  Also it has 21 million coins - supposedly the amount of gold in existence - so instead of buying the gold and paying people off it's so much easier to create something out of nothing.


FreeShitter's picture

I dont give a shit what anyone says about it, I dont like it because its too slow, fees are outrageous, and its non anonymous... but I still trade it for huge profits....If I can sell rubber dog shit made in Hong Kong for a massive profit I would. I dont hold ANY emotional attachment to investments. BTC isn't anonymous so drug dealers and criminals would be stupid to use it.

The Billy Blaze's picture

I agree with your trading logic, however your facts are fucked up.  Bitcoin is absolutely anonymous. 

The Billy Blaze's picture

Noob?  You fucking retard.  Learn to read, then get back with me.  Bitcoin is anonymous; unless, of course, a moron like you decides to disclose your identity.  Hit the road, dipshit.

Mr_Potatohead's picture

You're kidding, right?  FreeShitter is trading BTC like a fiddle.  He's selling while you're buying.  He's buying while panicked snowflakes are selling.  Based on his posting history, he seems to know the entire game very well.  Not sure about his age, but I'll guess he's been around a while.  Probably learned a lot of stuff the hard way and now is reaping the benefits.  He's giving you a reference and the straight scoop on something very important.  You're an idiot to ignore him.  If you're an idealistic millenial, you sorta have an excuse because public and college education ain't what it used to be.  If you're not....  well... let's not go there.

The Billy Blaze's picture

Fuck off PotatoForeskin.  Keep sucking FreeShitter's dick "based on his posting history".  Nobody knows the "entire game" you fucktard.  You need to take FreeShitter's dick out of you mouth.  Bunch of fudge-packing homos.....

Mr_Potatohead's picture

LOL.  Yep, as I suspected, you're a millenial!

The Billy Blaze's picture

Fuck off PotatoForeskin.  I find it humorous that you find some perverse satisfaction in labeling my anonymous username as something you deem to be a lesser air breather.  As if it makes some difference whether I'm 20 or 70.  Faggots like you need to get some skin (other than FreeShitter's foreskin) in the game.  Bitcoin is anonymous.  Period.  Now go find some other sandbox to play in.  This is the fight club and you fight like a pussy.

Mr_Potatohead's picture

You're not acting like you're finding things humorous!  I'm having fun. Really!  It's impossible for you or any other ZH poster to elicit the kinds of emotions that you must be feeling when you type the things you're typing.  Trust me.  Even tmosley couldn't get under my skin - and he tried really hard.

You're mistaken about how to fight in the fight club.  Losing your cool means you lose in Fight Club and that you're likely to lose in life.  When you learn how to have fun, even while getting under somebody's skin - like I've gotten under yours - you'll know how to fight. 

The Billy Blaze's picture

I accept your surrender.  Pussy.

MayIMommaDogFace2theBananaPatch's picture

 As if it makes some difference whether I'm 20 or 70.

So when your 70 year old grandmother goes to open her Coinbase account, is she going to think "bitcoin is anonymous" in that particular use case?

Or should we figure your 70 year old grandmother would never be fool enough to use Coinbase, because it makes no difference whether she's 20 or 70?

tmosley's picture

The word you are looking for is "psuedonymous".

You can choose to stop acting like a child, or you can choose to continue down your current path.

The Billy Blaze's picture

Says the BCH loser.  Too funny.

a Smudge by any other name's picture

Mose a loser? Heh. I very sincerely doubt that.

I wonder how much money his encouragement has made others. I wonder how you compare to this.

Forgetting bitcoin for a moment, just in terms of cogent response TMoseley has his detractors (to include your very own cute self) beat quite consistently.

If you are a gold bug you already let everybody down. If you are a hedgie or a vol chaser or a BTFDer, you are helping destroy real business. And if you are a passive troll, well, maybe that really does make you every bit the winner you are. And all the winner you will ever be.


Decoherence's picture

Don't all of the exchanges require you to verifiy your ID, like Gemini and Kraken, before you're allowed to trade?  I'm assuming that's what you mean by psuedo.  The exchanges have your ID, but don't disclose it unless forced to?  

The Billy Blaze's picture

If you are under the impression that the ONLY method of purchasing cryptocurrency is through an exchange, then you need to educate yourself.

Mr_Potatohead's picture

Until facial recognition software came along, you could purchase anything anonymously by using cash - one on one - as long as no other info was exchanged.  Those days are long gone.  If you think otherwise, you're as ignorant as you are arrogant.

hongdo's picture

Converting fiat to Bitcoin or back again is where you get ID'd.  I tried a Bitcoin ATM with a hardware wallet and could convert cash to Bitcoin but it required a phone number to receive a code number in a message.  I've lost track of whether it is still possible to get a US cash throw-away phone.  I know in some countries like Japan you cannot but you probably can somewhere.  Also changing your address for each transaction may work but I am not experienced enough yet.

If we are going to talk about these topics some specific techniques would be appreciated.

lickspitler's picture

um  LocalBitcoins used it in Tokyo 2014  met the dude at starbucks Shibuya. 

lickspitler's picture

TMosley you will have the balls to tell us when you switch back to BTC right ??

ps that buy wall at 0.1 BTC/BCH is total pump n dump bullshit


tmosley's picture

Of course I will. I will trade right back into it the very second those fees come down to reasonable levels and have a good chance of staying there.

Bitcoin has a lot of problems that don't matter directly, but that indirectly kill the coin because they lead to a situation where it becomes unusable. If that is fixed, Bitcoin will prosper for quite some time. If not, it will die sooner than many think.

MagicMoney's picture

Bitcoin is transparent. You can't be transparent and anonymous at the same time. For transparency, the ledger is public for all to see any transaction. Since wallets have their own ID it is not totally anonymous. Sure they don't have your name, address, and social security number, but the transaction is recorded for viewing pleasure. Since there is a line to deduce from it is not quite secret at all with modest tracking methods. This is why "they", the developers encourage you to use multiple transaction IDs to improve anonymity.

Clock Crasher's picture

I thought the math was 21 million BTC 21 million BCH 21 million Segwit 

Then divide all those coins by 0.00000001 to get total units of smallest size 

The Billy Blaze's picture

What a stupid fucking statement.  Buy phyical gold if you want it.  I know I stack the shit out of it.  However, you are an absolute retard to believe that bitcoin is the backbone of illicit CIA transactions.  Get your head out of your ass.  Bitcoin is going to shoot to the stars; then crash into oblivion.  Throw a small amount of fiat into the game and see if you can guess correctly. 

MayIMommaDogFace2theBananaPatch's picture

Then divide all those coins by 0.00000001 to get total units of smallest size 

I see this "logic" over and over and am simply blown away that people actually arrive at the belief that division into smaller units amounts to the same "fuck you" scam as multiplying the available underlying supply.  

Aerows's picture

Then avoid it.  More for me!

Mustafa Kemal's picture

"CIA coin (aka bitcoin) used to pay off arms smugglers, assassins, child kidnappers, drug smugglers, warloads, dems and rinos and whatever else fits their agenda. "

uno dos tres quatro cinco cinco seis

I heard that meme before;

Its old and stale and certainly incorrect. you should go back to your boss and ask them how to better troll

lickspitler's picture

CIAcoin NSAcoin......

JustUsChickensHere's picture

It has 21 million coins ... but not really - you should think of a coin like you would think of a Metric tonne of Gold...  that is 1,000,000 grams of Gold.

In a similar way, a Bitcoin is 100,000,000 Satoshis - a Satoshi is the smallest unit in the Bitcoin system.

So there are really 2,100,000,000,000,000 Satoshis (21 quadrillion) currency units.


There are not many retail purchases for a Metric tonne of Gold.


If Bitcoin continues to gain adoption, retail puchases of a whole Bitcoin will not be common either.

AustrianJim's picture

These hedge funds always make money in the markets they play in. They are insiders. They are market makers. They will create and structure products so that they make money off of transactions, regardless of what the underlying product is doing. Just like in Vegas, where the house always has the edge, so too in New York and London. Otherwise, they would not be able to stay in business.

They certainly might like for people to think cryptos are going to the moon - why not? Imagine how much business that will drive their way. Crypto accounts, crypto futures, crypto derivatives. Let's make some money.

Be careful, crypto lovers. These guys are not your friends.

Justin Case's picture

They are market makers and the TPTB can add or remove funds to play with other peoples money, like GLD.

hongdo's picture

OPM and 2 and 20

friends and money

oil and water

Heavy McNuggets's picture

Will hedgefunds and CME stop the volatility in bitchcoin or just make it more volatile?

Clock Crasher's picture

It's only proper that a bubble of this size have a blow off top for the record books.  

10,000 is just for starters. 

The Billy Blaze's picture

Couldn't agree more.  I'm not a fan, at all, of the Bitcoin phenomenon, but the money that is set to flow into that "investment product" is truly astounding.  I would not be surprised to see 10k by February.


Full Disclosure:  I purchased one Bitcoin at $6300.

Clock Crasher's picture

Nice.  Whatever you do with the profits make sure you don't buy silver/gold.  Better off with safety/security/land.  Just my .02


The Billy Blaze's picture

I purchase gold/silver every week.  I fully believe this gigantic ponzi will explode one day; including bitcoin.  Until that time, I will play loose funds towards the cryptocurrency game.  Biggest financial fraud of all time, but I made some serious coin with ETH.  Just got into bitcoin.

JibjeResearch's picture

I believe 10,000 will happen...

I think 50K is possible.. if the servers control future fee..

Some how, I'm chicken out...

I would rather make small gain in something else.. than risk a little on BTC...

But I'm all in with Tezos crypto ahahha ahah go figure ahahah

hackjealousy's picture

Given that the CME will only by dealing in fiat and is not offering delivery of actual bitcoin, the most this will do is draw investment dollars away from the actual coin.

The Count's picture

 You have no freakin idea how they will be able to manipulate Bitcoin. There are no coincidences. Guess how they have been supressing gold without actually selling real gold.

Brazen Heist's picture

Gold is very centralized. Central banks are the biggest owners of gold.

Bitcoin is a wilder beast to tame.

Let's see what they got shall we.

saldulilem's picture

Pump it pump it pump pump it up
Nuttin' can make this one stop

jmack's picture

"Massive Hedge Fund CEO "Ready To Add Bitcoin To Investment Universe" | Zero Hedge"


so is this a really big fat dude that is a ceo at a hedge fund. or is the hedge fund very large?