M31 Capital Seeks To Launch New Bitcoin Hedge Fund


M31 Capital, a New York-based global investment firm, has filed documents with the United States Securities and Exchange Commission, or SEC, to launch a new Bitcoin hedge fund (BTC).

The proposed fund, dubbed M31 Capital Bitcoin Access Fund, is a Delaware-based limited partnership hedge fund, according to a Form D SEC filed Tuesday. The minimum investment for any outside investor has been set at $ 10,000. Details of the fund’s structure were not disclosed.

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M31 Capital focuses exclusively on cryptocurrencies and blockchain technology. The company also operates M31 Ventures, whose investment thesis is based on discovering new business opportunities within the emerging blockchain ecosystem.

Crypto hedge funds represent a tiny portion of the overall digital asset market. In 2020, PwC estimated that crypto hedge funds had more than $ 2 billion in assets under management, after more than doubling from the previous year.

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M31 Capital’s potential foray into cryptocurrency is hardly surprising given that its co-founder Nathan Montone has been trading Bitcoin since 2011. Last year, Montone told TBEN that more and more investors institutions envisioned Bitcoin as a scarce fixed-cap asset. Much of this new interest stems from the U.S. federal government’s post-pandemic stimulus package, which included trillions of dollars in freshly printed stimulus.

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Institutional interest in digital assets exploded in 2020, with fund managers such as Grayscale and Bitwise attracting large capital inflows. As TBEN reported on Tuesday, Bitwise’s assets under management eclipsed $ 1 billion, after more than doubling in the space of two months. From Monday, the advantages of Grayscale totaled $ 42 billion.