Marshall Wace LLP is a hedge fund based in London, founded by Paul Marshall and Ian Wace in 1997. Marshall serves as chairman & chief investment officer and Wace is managing director & chief risk officer. The company is recognized as one of the largest hedge fund managers in the world.
According to the Financial Times, a British hedge fund company, Marshall Wace, which holds more than $55 billion in assets under management, is planning to invest in the cryptocurrency industry.
Specifically, the company is launching a portfolio that will purchase shares in digital finance companies that are already at a later stage of development; The infrastructure stablecoins is also a “special focus” for the company.
Marshall Wace's new launch will be led by Amit Rajpal, hedge fund executive director of Asia operations. However, the details of the new launch — including the size of the new portfolio — are still unclear.
In May, Marshall Wace also participated in a fundraising round for Circle, the US-based company behind USD Coin, generating $440 million.
Major Hedge Funds Focus on Cryptocurrencies
Marshall Wace joins a long line of hedge funds that have embraced the cryptocurrency industry.
In December last year, SkyBridge Capital - led by former White House communications director Anthony Scaramucci - bought the number Bitcoin worth 25 million dollars.
Brevan Howard Asset Management is another hedge fund that has participated in cryptocurrency. In April of this year, the Jersey-based company announced it would invest 1.5% of its $5.6 billion hedge fund in cryptocurrency.
Their investments form part of a broader movement in the hedge fund industry towards cryptocurrency. According to PriceWaterhouseCoopers, half of the hedge funds invested in the cryptocurrency industry in May. A month later, a survey conducted by the management company Intertrust Group stated that the hedge funds The agency plans to invest more than 7% of their total holdings in digital currency over the next 5 years.
The growing institutional appeal of digital currency
Hedge funds are not the only institutional investors exploring cryptocurrencies. Come back when Bitcoin led the cryptocurrency's famous Christmas 2017 bull run, much of the industry's driving force came from retail investors.
Fast-forward to 2020, and institutional investors are starting to notice the industry. In August and September, software company MicroStrategy announced a $425 million aggregate investment in Bitcoin. The company's CEO, Michael Saylor, has become one of the company's strongest advocates Bitcoin.
Since MicroStrategy's investment, other major financial institutions have joined the digital currency train. They include payments firms like Jack Dorsey led by Square, JPMorgan Chase and Morgan Stanley.