Marshall Wace, a London-based hedge fund, is looking to get involved in the crypto market. The fund with more than $55 billion in assets under management is looking to get into the market through crypto startups, especially those in the late stages of their development. Its focus will be on crypto startups that offer payment services, especially those that deal in stable coins.
Even before making this announcement, the company had shown indications of its direction, with some of its investment. A while back, it invested in Circle, the company behind the stable coin called USD Coin.
Marshall Wace is one of the institutional players getting into cryptocurrencies and other aspects of blockchain technology. One of the more notable institutions that have already made in-road in crypto is Andreessen Horowitz, which now has two crypto funds.
Its second crypto fund is already worth $2.2 billion. Andreessen Horowitz stated that from its analysis, the next wave of technology growth would revolve around cryptocurrencies.
Data on capital allocation by hedge funds shows that by the year 2026, most hedge funds will have around seven percent of their assets in cryptocurrencies. This is a big deal, as it points to a growing demand for crypto.
Since Bitcoin’s inception, the crypto market has largely been driven by retail money. It is only in 2021 that institutional players have shown a strong interest in this market.
The benefit of institutional capital in this market is that some of the wild price swings that have characterized it so far could decline, making crypto an even more viable long-term investment.