M&G Investments Makes $20 Million Investment in UK Crypto Derivatives Platform
In a significant move for institutional adoption of digital assets, M&G Investments, the asset management arm of pensions giant M&G Plc, has invested $20 million in a UK-based crypto derivatives trading platform. This investment is part of a $30 million series B funding round for Global Futures and Options Ltd., known as GFO-X. The capital injection was made on behalf of M&G’s £129 billion Prudential With-Profits Fund, demonstrating the increasing interest of traditional asset managers in the crypto space.
GFO-X Partners with LCH SA to Utilize Clearing Service
GFO-X has entered into a strategic partnership with LCH SA, a subsidiary majority-owned by the London Stock Exchange Group (LSEG). Through this partnership, GFO-X will leverage LCH’s clearing service, DigitalAssetClear, designed to clear Bitcoin (BTC) index futures and options contracts traded on GFO-X’s platform. The collaboration aims to enhance efficiency and security in crypto derivatives trading by utilizing LCH’s expertise in clearing and risk management.
Regulatory Approval Pending for LCH DigitalAssetClear
Although both LCH DigitalAssetClear and the partnership with GFO-X were expected to go live by the end of 2023, regulatory approval for LCH DigitalAssetClear is still pending. However, GFO-X anticipates launching its platform in the first quarter of 2024.
M&G Investments’ Investment Signals Renewed Confidence
M&G’s significant investment in GFO-X reflects changing tides in institutional support for digital asset infrastructure. Following the collapse of FTX exchange in November 2022, which led to significant losses for traditional asset managers, M&G’s entry into the sector indicates renewed optimism and growing confidence among institutional players. The investment not only boosts GFO-X but also reinforces the broader narrative of institutional acceptance and participation in the crypto derivatives market.
Institutional Adoption of Crypto Derivatives Poised for Growth
As regulatory frameworks mature and platforms like GFO-X gain traction, institutional adoption of crypto derivatives is expected to enter a new phase of growth and development.
Hot Take: Volatility in the Global Cryptocurrency Market
The global cryptocurrency market remains volatile, with recent price pullbacks causing the market cap to drop to $1.502 trillion. This represents a retrace of 5.59% in the last 24 hours but a growth of 82.77% compared to one year ago. Bitcoin (BTC) remains dominant, with a market cap of $811 billion and a Bitcoin dominance of 53.30%, indicating its significant share in the overall cryptocurrency market.
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