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M&G Invests $20M in UK Bitcoin Derivatives Platform GFO-X
Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.
Source: PexelsUK asset management firm M&G Plc announced it has invested $20 million in the bitcoin derivatives exchange, Global Futures & Options Holdings (GFO-X) looking to support “regulated trading of digital assets” and meet demand from institutional investors.
GFO has a partnership with London Clearing House, which is regulated by the Financial Conduct Authority (FCA) and will act as a clearing house and trading venue for digital currency asset derivatives.
The funding was led by M&G’s public equity investment division, and provided by M&G’s Crossover strategy in a series B funding round on behalf of its £129 billion Prudential With Profits Fund.
Lack of Regulated Venues Hampering Growth
Since the collapse of FTX, a cryptocurrency exchange that facilitated spot, derivatives, and leveraged trading for cryptocurrencies sent the price of Bitcoin to its lowest price since 2020. Over the years there has been a lack of trust in the space and a call for more regulation around exchanges.
“The lack of regulated trading venues is materially hampering the growth of the digital currency trading market,” said M&G Portfolio Manager, Jeremy Punnett, in a press release.
“The UK has the potential to become a global hub for digital asset technology and investment, making London an excellent destination for GFO-X’s new global trading venue. This investment enables GFO-X to scale its operations as the business is set to benefit from investors shifting their trading from unregulated to regulated venues,” adds Punnett.
M&G went on to highlight that GFO-X will target traditional financial institutions wanting to trade digital currency derivatives in a safe and regulated venue.
According to M&G A 2022 survey showed there is significant demand from institutional investors for infrastructure. It is estimated 91% of institutional investors are interested in tokenised products, 41% currently hold cryptocurrencies and a further 15% plan on adding digital assets to their portfolios over the medium term**.**