Month: April 2021

SEC Docs Reveal Coinbase and Bakkt Behind Hedge-Fund Tycoon’s Bitcoin Venture

US SEC docs revealed billionaire hedge fund manager Paul Tudor Jones’ source of bitcoin assets are the top cryptocurrency trading houses Coinbase and Bakkt, Tudor Jones is one of the early Waĺl Street adopters of bitcoins as hedge fund investment, which he announced in May 2020. He said he invested 1% of his assets in the digital coin as he saw the potential of BTC futures as an inflation hedge against the pending “great monetary inflation” of a resulting economic fallout caused by the global pandemic.

Tudor Jones’ announcement of his bitcoin investment created the right effect. Many other Wall Street investors took his advice by investing in bitcoin futures, while the demand for BTC trended, BTC trading prices soared at record-breaking levels. As of this writing BTC trading closed at $56,467, a far cry from the $9,846 price by which the hedge fund billionaire placed 1% of his assets into BTCs.

Initially, many in the financial trading sector had reservations about Tudor’s promotion of BTC, since they remained doubtful if Tudor actually made outright investments in the cryptocurrency. .The founder of the $44 billion Tudor Investment Corporation whomused to be skeptic about cryptocurrencies, further forecasted that Wall Street was about to witness the phenomenal “birthing of a store of value,” in the crypto money.

Coinbase Prefers Not to Comment on the Revelations

As it is Coinbase Custody Trust Company and Tagomi Trading LLC the brokerage firm acquired by Coinbase in May 2020, the same period Jone made the decision to invest in bitcoins, as well as Bakkt Trust Company, are the current providers of custodial services to the family-exclusive Tudor Jones digital assets. Coinbase prefer not to respond to the revelations that linked them to the hedge fund billionaire’s BTC assets. After all, secrecy and anonymity are among the factors that have been drawing traditional investors to use the digital coin as their hedge investment.

According to Chainalysis, the said companies have played major roles in bitcoin’s bull market in 2020-2021, as blockchain’s data showed that they actively participated in trading more than 500,000 BTCs to financial trading whales during the latter part of 2020.
Continue reading →

Posted by Madelina Feliks in Cryptocurrency