Questions Surround Bitcoin on the Buy Side
One of my colleagues, Timothy Bourgaize Murray, has a tendency to prattle on about things that I know nothing about. I'm not quite sure if this is more a sign of his intelligence, his pretentiousness, or maybe I'm not as erudite as I might think I am.
So when he wrote a New Perspective for BST on some Bitcoin developments ealier this week, I believe that I might've made a snarky comment before even reading his story, because that's the kind of editor I am.
And then I read his article. What jumped out at me were the prestigious buy-side names that are involved in the Bitcoin revolution.
Tim spoke with Bitcoin market maker, Fort Hill, a Massachusetts-based alternatives manager overseeing a family of different mutual funds totalling about $4 billion. Fort Hill founder Alec Petro believes in the potential of Bitcoin. "It's risky," he told Tim, "but we believe the risk-reward has been—and continues to be—attractive, and in the long term has the potential to have huge rewards to larger participants as the market evolves."
The story notes that there are two types of market participants: "market-makers accumulating trading positions throughout the day on one hand, and investors like Fortress Investment Group, who were in early consultations with [alternative trading system] Atlas, on the other." The ATS recently added Bitcoin trading and walleting to its offering, partnering with mainstay connectivity provider Perseus in the process.
In addition to Fortress and Fort Hill, prop trading shops Sun Trading and Tradebot Systems have also have begun dabbling in Bitcoin, according to Shawn Sloves, CEO of Atlas.
I'm an old man and I don't like change; the concept around Bitcoin remains out of my grasp. All I really know of it is what I read about it after the collapse of Bitcoin exchange Mt. Gox, the Silk Road debacle, and the apparent suicide of Autumn Radtke, the CEO of First Meta, an American Bitcoin exchange. For a virtual currency in its infancy, these aren't the most confidence-inspiring headlines. And yet, as Petro suggested, its price is starting to stabilize after a year of heady gains and runs on the currency. Some predict it to rise higher still; others see a bubble. That, of course, makes a market.
Rest assured, I will not be an expert on Bitcoin in the near future; I'll continue to get my cues from Tim. But there is some clear interest coming from the buy side as it relates to the potential of Bitcoin.
There's a lot of hype and negativity out there, and when there's a great deal of ignorance that encompasses a topic, sensational headlines will always rule the day. Perhaps sounds technology—and clarity of regulatory oversight—can make Bitcoin more capital markets-friendly. The question becomes: Will the negative headlines, or the positive hype, win the war?
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
An AI-first approach to model risk management
Firms must define their AI risk appetite before trying to manage or model it, says Christophe Rougeaux
Waters Wavelength Ep. 297: How to talk to the media
This week, Tony and Wei-Shen discuss the dos and don’ts for sources interacting with the media.
The Waters Cooler: Tidings of comfort and joy
Christmas is almost upon us. Have you been naughty or nice?
FactSet launches conversational AI for increased productivity
FactSet is set to release a generative AI search agent across its platform in early 2025.
Waters Wavelength Ep. 295: Vision57’s Steve Grob
Steve Grob joins the podcast to discuss all things interoperability, AI, and the future of the OMS.
S&P debuts GenAI ‘Document Intelligence’ for Capital IQ
The new tool provides summaries of lengthy text-based documents such as filings and earnings transcripts and allows users to query the documents with a ChatGPT-style interface.
The Waters Cooler: Are times really a-changin?
New thinking around buy-build? Changing tides in after-hours trading? Trump is back? Lots to get to.
A tech revolution in an old-school industry: FX
FX is in a state of transition, as asset managers and financial firms explore modernizing their operating processes. But manual processes persist. MillTechFX’s Eric Huttman makes the case for doubling down on new technology and embracing automation to increase operational efficiency in FX.