New York Digital Investments Group (NYDIG) raised $ 150 million to launch two new cryptocurrency funds. The money was received from three institutional investors.
NYDIG Digital Assets Fund I raised $ 50 million from institutional investors and NYDIG Digital Assets Fund II raised $ 100 million in two filings with the US Securities and Exchange Commission (SEC). A source familiar with the situation confirmed that Fund I invests exclusively in bitcoin. This is NYDIG’s latest offering for the growing number of institutional clients in BTC, he said.
It is not yet clear if Fund II is solely investing in the largest cryptocurrency. According to the company, two unnamed investors invested $ 50 million in Fund I, and only one large investor put the entire $ 100 million in Fund II.
NYDIG spun off from $ 10 billion Stone Ridge Asset Management in 2017 with a mission to attract the attention of institutional investors to cryptocurrencies. In November 2018, the New York State Department of Financial Services (NYDFS) issued a BitLicense to a division of NYDIG Execution. In addition, NYDIG received SEC approval last December to launch a fund to work with bitcoin futures.
The two new cryptocurrency funds continue NYDIG’s recent trend to register their cryptocurrency offerings as investment vehicles under Rule 506 (c). Basically, this means NYDIG can advertise funds to a wider audience.
Institutional investors are increasingly interested in cryptocurrencies. Canadian investment firm Cypherpunk Holdings recently sold its ETH and XMR holdings and invested the proceeds in bitcoin. The company’s investment in BTC is up 279% since the end of the second quarter of this year. In addition, Guggenheim Partners has filed an application with the SEC for more than $ 500 million from the Macro Opportunities fund to invest in the Grayscale Bitcoin Trust.
