Man Group launches Crypto hedge fund despite FTX. Fund management company Man Group Plc is preparing to launch a crypto hedge fund in the coming weeks. This should be applauded as the London-based firm enters the crypto market which has continued to decline since the news of the FTX implosion and filing. According to a statement from Bloomberg, Man Group, which currently has more than $138 billion in assets under management (AUM), plans to launch a blockchain-based hedge fund through its computer trading division AHL.
It is expected that the crypto insurance fund will start before the end of this year. Once the crypto hedge fund will launch, it will be led by portfolio manager Andre Rzym who has been working at Man AHL since 2005. Rzym, who previously worked at JPMorgan, has made a strong effort on the part of Man Group to understand the vision. During his time at JPMorgan, Rzym bought interest rate and credit default swaps in emerging markets.
Along with Man AHL and insurance money coming in, Rzym’s manager is working to identify other markets and develop a business model. He has contributed to the company’s expansion into securities such as interest rate swaps, credit default swaps, bonds and disaster bonds.
Man Group recorded assets under $138 billion in September
Initially, Man Group was trading cryptocurrency futures within AHL, but they have to analyze the serious risks in front of the crypto hedge fund startup. Man Group is listed on the London Stock Exchange and is part of the FTSE 250. Its share price, which fell by 6.2% this year, rose almost 2% on Friday. Notably, the total AUM of $138.4 billion in September was a slight decrease from its $142.3 billion in the previous quarter.
While all this comes as a result of FTX’s lack of liquidity which has also led to the collapse of its sister trading company Alameda Research and many other partners, crypto adoption is moving slowly. Many regulators have begun to work on developing a more robust and well-structured regulatory framework. Even the price of many crypto assets has dropped like Bitcoin (BTC) which is currently trading below $17,000.
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